Advertisements
Advertisements
प्रश्न
"Some costs are semi-variable in nature." Comment.
Some costs are semi-variable in nature. Justify either for or against.
Some costs are semi-variable in nature. Justify either for or against and give a reason.
Advertisements
उत्तर
- Definition: Semi-variable costs, often called mixed costs, include both fixed and variable components.
- Fixed Component: Part of the cost is constant, independent of production or activity.
- Variable Component: Part of the cost fluctuates according to output volume or activity level.
- Example: Utility bills frequently include a fixed base price and a variable charge based on usage.
- Behaviour: Semi-variable expenses fluctuate in total but not proportionally to changes in output or activity levels.
- Management: Understanding semi-variable costs is critical for budgeting, forecasting, and decision-making.
APPEARS IN
संबंधित प्रश्न
Describe cost on the basis of behaviour.
Which of the following cost is time based?
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Which of the following best describes a fixed cost?
Distinguish between shut down cost and sunk cost.
Fixed cost is a cost which ______.
Fixed cost per unit decreases when ______.
Variable cost per unit increases when ______.
A cost that is easily traceable to a cost object is known as ______.
What is meant by variable cost?
