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Which costs may have both variable and fixed components?
Labor. Fixed rate for hours planned; variable rates for unscheduled overtime.
What are examples of fixed and variable cost in shopping center?
Some fixed costs of running a shopping center would be rent, employee salary (if not commission based), utilities (if you maintain consistent hours of operation). Some variable costs would be Cost of goods sold, commissions, and perhaps shipping costs.
How do you calculate fixed manufacturing overhead?
Fixed Overhead are costs which do not alter based on production- even if you produced 0 units you would still have to pay it. Example would be Factory Space Rental/ Equipment Rental. The Fixed Overhead can be allocated per unit for absorption by Direct Labour Hours/ Machine Hours/Units of Raw Material. (The indicator of absorbtion is usually the same as that for variable overheads). thus Total Fixed Overheads/ Indicator units x # of Indicator Units used= Fixed Overheads to be absorbed per unit
Is labor the biggest fixed cost in an organization?
Labour costs may be either fixed or variable, so therefore labour may or may not be the largest fixed cost in an organization depending on the nature of the company and its employees. Variable labour costs are known as wages and fixed labour costs are known as salaries. Wages are usually billed per hour, and are therefore variable costs (e.g. a worker is paid $15 for every hour he/she works). Salaries are paid out no matter how long the employees work for, and are therefore fixed costs (e.g. a person on a $70 000 salary is always paid $70 000 no matter how many hours he/she works). Other labour costs that are variable include commissions, where the employee is paid a percentage based on how much revenue he/she generates for the business, or how many products he/she sells, or how many customers he/she acquires. Depending on what percentage of employees are on wages, salaries, or commissions, the fixed cost of labour varies depending on the organization.
Is Wage payments a fixed cost or Variable cost?
Wages are generally based on an hourly rate, therefore they are generally a variable cost. Think for instance at a manufacturing business and the production of a specific product. A calculation can be made on the labour cost needed (budget), which will later be compared to actual cost incurred. These are generally based on a number of labour hours needed/used multiplied by an hourly rate. Salaries are generally considered a fixed cost.
Which costs may have both variable and fixed components?
Labor. Fixed rate for hours planned; variable rates for unscheduled overtime.
Are utilities a fixed or variable cost?
utilities is a fixed cost.^not entirely true. utility costs are fixed when it's relatively the same every month, like a retail store open the same number of hours. however, it is a variable cost if it changes a lot, like a manufacturing company using more or less electricity when there are higher or lower demands for products.
What are examples of fixed and variable cost in shopping center?
Some fixed costs of running a shopping center would be rent, employee salary (if not commission based), utilities (if you maintain consistent hours of operation). Some variable costs would be Cost of goods sold, commissions, and perhaps shipping costs.
Is hours a dependent or indepndent variable?
hours is a dependent variable as it depends on seconds and minutes for it to occur
Why is fixed cost variable and variable cost fixed?
Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't constant (variable). As units produced increase (or whatever activity base) then the fixed cost per unit decreases. Fixed example: If rent is $8,000, then the total rent will still be $8,000 every month whether or not the company makes 100 products during the period or 1,000. However, using the 100 and 1,000 units as an example, the per unit cost decreases. When the company makes 100 units, the fixed cost per unit is $80 ($8,000/100 units). When the company makes 1,000 units, the fixed cost per unit is $8 ($8,000/1,000 units). The opposite applies for variable costs. Variable costs, by their nature, change with the change in units produced (or again, any other activity base the company uses, such as machine hours or labor hours). Therefore, there will be a different total for 100 units produced and 1,000 units produced. However, the unit cost never changes. Variable example: If a product that a company produces requires a certain part, this is a variable cost. Let's say the cost of the part is $10. The total variable cost for 100 units is $1,000 ($10*100 units), and for 1,000 units it's $10,000 ($10*1,000 units). However, in each case, the variable cost per unit remained at $10. Hope this is what you were looking for!
Why fixed cost variable cost and variable cost fixed cost?
Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't constant (variable). As units produced increase (or whatever activity base) then the fixed cost per unit decreases. Fixed example: If rent is $8,000, then the total rent will still be $8,000 every month whether or not the company makes 100 products during the period or 1,000. However, using the 100 and 1,000 units as an example, the per unit cost decreases. When the company makes 100 units, the fixed cost per unit is $80 ($8,000/100 units). When the company makes 1,000 units, the fixed cost per unit is $8 ($8,000/1,000 units). The opposite applies for variable costs. Variable costs, by their nature, change with the change in units produced (or again, any other activity base the company uses, such as machine hours or labor hours). Therefore, there will be a different total for 100 units produced and 1,000 units produced. However, the unit cost never changes. Variable example: If a product that a company produces requires a certain part, this is a variable cost. Let's say the cost of the part is $10. The total variable cost for 100 units is $1,000 ($10*100 units), and for 1,000 units it's $10,000 ($10*1,000 units). However, in each case, the variable cost per unit remained at $10. Hope this is what you were looking for!
IS wages a fixed cost?
No, wages are typically considered a variable cost because they fluctuate based on factors such as the number of hours worked and the rate of pay. Fixed costs, on the other hand, do not change with the level of production or sales.
Why fixed cost variable cost and cost fixed?
Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't constant (variable). As units produced increase (or whatever activity base) then the fixed cost per unit decreases. Fixed example: If rent is $8,000, then the total rent will still be $8,000 every month whether or not the company makes 100 products during the period or 1,000. However, using the 100 and 1,000 units as an example, the per unit cost decreases. When the company makes 100 units, the fixed cost per unit is $80 ($8,000/100 units). When the company makes 1,000 units, the fixed cost per unit is $8 ($8,000/1,000 units). The opposite applies for variable costs. Variable costs, by their nature, change with the change in units produced (or again, any other activity base the company uses, such as machine hours or labor hours). Therefore, there will be a different total for 100 units produced and 1,000 units produced. However, the unit cost never changes. Variable example: If a product that a company produces requires a certain part, this is a variable cost. Let's say the cost of the part is $10. The total variable cost for 100 units is $1,000 ($10*100 units), and for 1,000 units it's $10,000 ($10*1,000 units). However, in each case, the variable cost per unit remained at $10. Hope this is what you were looking for!
How do you calculate fixed manufacturing overhead?
Fixed Overhead are costs which do not alter based on production- even if you produced 0 units you would still have to pay it. Example would be Factory Space Rental/ Equipment Rental. The Fixed Overhead can be allocated per unit for absorption by Direct Labour Hours/ Machine Hours/Units of Raw Material. (The indicator of absorbtion is usually the same as that for variable overheads). thus Total Fixed Overheads/ Indicator units x # of Indicator Units used= Fixed Overheads to be absorbed per unit
Sentence using variable?
I have variable hours of work; today I will leave early.
Which variable would be the dependent variable in a linear regression analysis?
hours spent studying
Is labor the biggest fixed cost in an organization?
Labour costs may be either fixed or variable, so therefore labour may or may not be the largest fixed cost in an organization depending on the nature of the company and its employees. Variable labour costs are known as wages and fixed labour costs are known as salaries. Wages are usually billed per hour, and are therefore variable costs (e.g. a worker is paid $15 for every hour he/she works). Salaries are paid out no matter how long the employees work for, and are therefore fixed costs (e.g. a person on a $70 000 salary is always paid $70 000 no matter how many hours he/she works). Other labour costs that are variable include commissions, where the employee is paid a percentage based on how much revenue he/she generates for the business, or how many products he/she sells, or how many customers he/she acquires. Depending on what percentage of employees are on wages, salaries, or commissions, the fixed cost of labour varies depending on the organization.
