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प्रश्न
Variable cost is a cost that ______.
पर्याय
Changes with the level of output.
Remains same at all levels of output.
Either changes with the level of output or remains same at all levels of output.
None of these.
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उत्तर
Variable cost is a cost that changes with the level of output.
Explanation:
Variable expenses are directly related to the degree of production or output. Variable costs rise with increased production and fall with decreased production. Variable costs include raw supplies, direct labour costs, and production-related utility charges.
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संबंधित प्रश्न
Write a short note on direct costs.
Distinguish between Fixed cost and Variable cost.
A firm has to pay a fixed rent of ₹ 500 for the postpaid mobile bill and further pay extra charges for the calls made in a month. Identify the type of cost mentioned here.
Which cost decreases with increase in the volume of output?
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.
Explain the following:
Sunk cost
The term “variable costs” refers to ______.
Fixed cost per unit decreases when ______.
Variable cost per unit increases when ______.
Give an example of Semi-Fixed cost.
