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Questions
Give one example of Variable cost.
Give examples of variable costs.
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Solution
Examples of variable costs are:
- Raw Material: It is a significant factor in production activity. As the unit of production increases, so does the need for raw materials.
- Labour cost: Labour wages are calculated based on the number of hours worked or units produced. As output increases, the company's labour costs will rise.
RELATED QUESTIONS
"A fixed cost is a cost that a business must pay whether it produces one product or a million. Regardless of output, the business must pay the same," amount spent to purchase a machinery is the example of ______ cost.
The cost which changes as per the levels of production is ______.
The cost which does not vary proportionately but do not remain constant with changes in the volume of output are known as ______ cost.
Telephone cost is an example of ______ cost.
Costs like rent, insurance etc. which do not change inspite of changes in the volume of output are ______ costs.
What is semi-variable cost?
Give one example of semi-variable cost.
Distinguish between variable cost and semi-variable cost.
What is Fixed Cost?
What is Variable Cost?
