Advertisements
Advertisements
Question
Variable cost is a cost that ______.
Options
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.
Advertisements
Solution
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.
RELATED QUESTIONS
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.
Describe cost on the basis of behaviour.
Indirect material scrap is adjusted along with ______.
Total variable cost per unit increases ______.
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.
Fixed cost is a cost which remains same at ______.
What is opportunity cost?
Explain the following:
Sunk cost
Distinguish between shut down cost and sunk cost.
Distinguish between Direct Labour cost and Indirect Labour cost.
Fixed cost per unit decreases when ______.
Amount spent to purchase a machinery is the example of ______ cost.
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?
Classify cost according to its nature.
Explain with an example, the meaning of fixed costs.
Explain with an example, the meaning of variable costs.
