which of the following is a variable expense quizlet

Some of the common examples of variable expense are the following: The variable cost is calculated using the formula shown below: Total Variable Cost = Total Quantity of Output * Variable Cost per Unit of Output. 25.B 15 for raw materials like potato, oil, salt etc. To summarize, variable costs are measured as a direct function of production volume which increases with expansion in production and decreases with contractions in production. Variable expenses tend to increase persistently in proportion to the capital and labor. Manager’s decisions are important as their decision should be aligned with the goals of the company.These goals are mostly linked to the financial aspects of the revenue and profit targets. B. B. D. Monetary growth Variable expenses are those expenses that are likely to be affected in proportion to the activities of the business. Your email address will not be published. 21.B Profit zoning By this, decreasing expense will lead to decreasing variable expense. 6. Raw material* You can view more similar questions or ask a new question. and D. Required cost You can follow me on Facebook. What is known as the price at which a seller projects that a buyer will buy a product? Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. The logic behind this expensing of fixed manufacturing costs is that the company would incur such costs whether a plant was in production or idle. 2.C The company's operating income is $35,000. The company’s profit is dependent on that total cost which is calculated as: The profit of the company can be increased by decreasing the total costs. 10) / Rs 60 = 0.833. Property taxes 9.C B. Wages of workers B. increase as production decreases. cost of common stock. cost of retained earnings. Complete the following table: DO THE MATH Data Number of Programs Total Fixed Costs Total Variable Costs Total Costs Marginal Costs Average Fixed Costs Average Variable Costs, The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3, suppose that the short run costs for a paintbrush manufacturer are given by the expression: TC= 100+2Q+.01 Q2 A. WAT ARE THE FIXED COSTS OF THIS MANUFACTURE? The components of ___ are variable costs and fixed costs. Given costs B. The term variable cost refers to costs that fluctuate with respect to cost-driver changes such as the volumes of production and sales. How much sales can fall before a business starts making less 5% Cash – Cash that is required for an immediate expense. A. Variable cost per unit, within the relevant range, will: A. decrease as production increases. 49.D The $500 per month is a fixed cost and $5 per hour is a variable cost. Selling price D. Fixed costs* Entire cost 9. increase the cost of capital. In order to manage a business, it is very important to understand the idea of variable expense as a crucial concept. i used @2dizzy2c's answer's and i got an 80% soo yeah dont use his/hers use mine.. well if u want a straight 100% put thats up to u!!! Given costs With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. cost of debt. They are expenses that will have to be paid by the company even though there are any changes in business activities. A. C. Both of the above What are expenses that do not change called? lower the cost of retained earnings. Which of the following is not a variable cost? What Is Variable Life Insurance? Consolidated has the following manufacturing costs: Plant management costs, $1,992,000 per year Cost of leasing equipment, $1,932,000 per year Workers’ wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,400 per Surfer; Tires, $150 per tire, each Surfer takes 5 tires (one spare). 2. 2. A variable expense is considered as an important component and a management tool in calculating the total expense. Known costs Fan page: m.esperanza.fanpage.35 What is the margin of safety? Hourly employees The shampoo used to groom pets The yarn used to make a scarf 37.B Variable expenses are those expenses that are likely to be affected in proportion to the activities of the business. Mine is all of them mostly TS Outcast and many more! What is known as the rate at which business expands by increasing output and business reach? This expense is fixed with respect to the cost per unit, but the total expense will increase with the volume of production. 2.B Profit increases when the contribution margin increases. A. Organic growth Moreover, it is also important to understand the practical application of this concept as when and where the variable expenses will impact. 4.B Basically, variable expense relates to the material costs that are used in production and the direct labor charges to make the products. Total Costs| Avg. The total cost is calculated by the sum of fixed and variable costs. 35.A Expenses like production wages, raw materials, sales commission, shipping costs etc. Thank you!! Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. C. Inorganic growth 1.A B. Which of the following are examples of possible fixed costs? 29.B 5. 25, Rs. A. 31.B 7. 20.C 43.A D fixed cost D. Changing costs B. New questions in Mathematics. A. 19.B Having discussed about variable cost, let us take an example to see its impact on the overall profit. Some expenses can contain discretionary, variable, and fixed categories. status: correct (1.0) correct: b your answer: b feedback: Correct. A business firm pays raw material for production. Variable costs per unit remain constant in the relevant range. The Exam answers were 100% right. Costs| Avg. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, How to Get a Business Loan -A Complete Step-by-step Guide, How To Get A Business Credit Card? 3.D A good example of this is raw materials. A Written budget, if followed, can remove overspending, guilt, and management by crisis spending. a. sales commission b. hourly wages c. rent d. materials 2 See answers thegreatandpowe thegreatandpowe The answer is c. Rent abreen609 abreen609 The correct answer is rent. A. 11.C Which variable represents her rent? As a manufacturer produces more units, it will naturally need more materials. Examples of Variable Costs. Typical small business variable expenses would be costs for raw materials to produce goods as well as operating expenses such as office supplies or hourly payroll. Bringing down fixed expense is a great challenge. 22.A Known costs C. Stable costs D. Fixed costs* 5. The reason the marginal cost curve eventually increases as output increases for the typical firm is because: A) of diseconomies of scale. 48.D What is the margin of safety? Its output is: A) 200 units. 5.B A target price Fixed costs Which of the following is a characteristic of a variable cost? 25 = Rs. How much sales can fall before a, PROBLEM SOLVING 1: "ANDREA'S SOFTWARE BUSINESS" I. What are expenses that do not change called? Which of the following describes variable costs? They change over a period of time. Var. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death. For example, the rental charges of a machine might include $500 per month plus $5 per hour of use. What is known as the rate of business expansion through increasing output and sales as opposed to mergers, acquisitions, and takeovers? Variable expense is important for the financial planning of the company. irrespective of the number of output produced.Variable costs vary with the number of output produced.Semi-variable is the type of costs, which have the characteristics of both fixed costs and variable costs. main: @_love_me_mas 14.B 9. Variable expenses are also called as unit level expense as they change with the number of units produced. B) of minimum efficient scale. b.A variable cost is a cost that is not linked to a company's output. 41.D $110,000 15. C. Complete cost C. Variable costs* cost of preferred stock. 8. 35 / Rs. D. All of the above. 46.B C. Both of the above* A company who pursues to increase its profit by decreasing the variable expense will have to decrease the expense on changing costs for raw materials, direct labor and advertising. By reducing the variable expense, the company can increase the profit or contribution margin. 50.D, bro i did this whole test then i found this life .-. Which of the following is true of a variable cost? 42.B 15.B Labor and raw materials costs C. Property taxes D. Interest payments on borrowed funds Variable costs are the costs of production that change when the rate of … ok ur welcome.Lol. 10.D Consider a potato chips manufacturing company. D. Monetary growth c . A. Organic growth* C. Inorganic growth* 45.C B. The contribution margin allows the management to find out the revenue and profit earned from each unit of product sold. Moderate costs Answer 30,000 units 8,710 units 12,273 units 20,000 units, The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: StandardCosts Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead3 hours, A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The following items are the same for the flexible budget and the master budget EXCEPT the same: a. variable cost per unit b. total fixed costs c. units sold d. sales price per unit . 34.A Thus, the cost of materials varies with the level of production. To calculate total variable costs, the formula is: Total quantity of units produced x Variable cost per unit = Total variable cost. If you like NF then tell me your fav song! The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, and $350 for, The predicted 2009 costs for Osaka Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $100,000 Variable $300,000 Fixed 220,000 Fixed 200,000 Average total assets for 2009 are predicted to be, When fixed costs are unitized, they A. may appear to be variable costs. 7. C. Profit predicting Managers will add the product of the variable expense as per unit costs and production volume to fixed costs to finalize the total production costs. Variable costing (also known as direct costing) treats all fixed manufacturing costs as period costs to be charged to expense in the period received.Under variable costing, companies treat only variable manufacturing costs as product costs. Moderate costs C. Variable costs* D. Changing costs 4. If the potato chips manufacturing company sells each packet for Rs. Entire cost Total cost* Complete cost Required cost 2. Variable expense has a different impact on managerial decisions. and Rs. Target price* An example of a variable cost is the resin used to create plastic products; resin is the key component of a plastic product, and so varies in direct proportion to the number of units manufactured. The monthly rent of a retai… 47.C The contribution margin is calculated as: Contribution Margin = Gross Profit / Sales = (Sales – Variable Costs) / Sales. 1. C. remain the same as production levels change. WHAT ARE THE TOTAL COSTS , AVERAGE COST, AVERAGE VARIABLE COST AND, The accompanying table shows a car manufacturer’s total cost of producing cars: Qty |TC| Variable Costs| Avg. Unit costs associated with Product ORD203 are as follows: Direct materials $50 Direct manufacturing labor 8 Variable manufacturing overhead 10 Fixed manufacturing overhead, If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000? The contribution margin for the potato chips is Rs. 25 to make 1 packet of potato chips weighing 250 gms. I love writing about the latest in marketing & advertising. The cost function is the mathematical relationship between the cost of a product and its various determinants. The company's degree of operating leverage (DOL) (rounded to one decimal point) is: a. b. 60 = 0.58. The fixed expenses are $77,000 and the contribution margin ratio is 30% (Sales minus variable costs of 70%.) Which of the following is a variable cost? Direct materials cost B. Straightminus line depreciation expense C. Property taxes D. Salary of plant manager. 7.B 26.C 12.B c is incorrect , any depreciation is fixed costs. D. None of the above 10 Alpha Company has a $250 sales price and $150 in variable manufacturing costs per unit. Therefore, the break-even point in dollars = $77,000 divided by 30%. Variable costs change with the amount of products or services you sell. Spam: melly.esperanza.spammmm A. 60, the gross profit for a packet will be Rs. Let us assume that it costs Rs. Variable costing is a concept used in managerial and cost accounting in which the fixed manufacturing overhead is excluded from the product-cost of production. A. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. Profit mapping* The sales level is 5,000 units. A variable life insurance policy is a contract between you and an insurance company. Which of the following are examples of possible fixed costs? C neither of the above B. 3. - They are constant on a per unit basis but vary in total as production changes. 27.A Groceries are a Variable expense because you may not spend the same amount on food every month What does a written budget if followed remove from your finances? Some items may appear on more than Contractual lease payments B. B. For example, 1. Question 22. yesss melly is correct, and i'll use those answer on the test and get a few wrong before they expect too much from me ! 1  A. C. Perfect price Fixed costs B. 32.C Answer fixed semi-variable operating variable 3. A. When the manufacturing increases, the raw material used will also increase thus increasing the expenditure. I missed a few just to make it look like I actually did it, but thank you. C. are stated on a per unit basis. A. Question 23. Which of the following costs must be adjusted to an after-tax cost? 28.C Another example of mixed or semi-variable cost is electricity bill. The expenses that occur in businesses are classified into two types – fixed expenses and variable expenses. 36.A Corporate growth The cost factor that is included in the decisions will have a major impact on the finances of the company. c.A variable cost in total remains constant regardless of the level of output. Answer. Start studying Fixed or Variable Expenses. 40.D Steps To Get A Business Card, Meaning Of Objective Statement And How To Create One, Difference Between Variable Cost and Fixed Cost, What is fixed expenses ? February 16, 2018 By Hitesh Bhasin Tagged With: Small business articles. Depending on the type of business, the variable expense will vary. A variable expense is considered as an important component and a management tool in calculating the total expense. Which of the following expenses is not a variable cost? The method is in contrast with absorption costing Absorption Costing Absorption costing is a costing system that is used in valuing inventory. C both of the above 17.B 39.C Variable costs are a company's costs that are associated with the number of goods or services it produces. 60 – Rs. A company's variable costs increase and decrease with its … The business firm will pay for the maintenance of the infrastructure like rental, electricity etc. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Variable Cost Per Unit Definition. Expenses like production wages, raw materials, sales commission, shipping costs etc. are examples of variable expense. 10. A. A. Variable Costs . B. Wow whoever posted that exam ur literally my favorite person to exist, bruh why it gotta be the nf dude who chill ahahah. The expression 2x+12y+365z represents her yearly expenses. B. 1. 10. How much sales can fall before a business starts taking a loss* 44.B 4. Let's stay in touch :), Your email address will not be published. *=my answer. C. Stable costs What are expenses that change as conditions change? 33.A 1 for each unit completed (variable). Just as with personal finance, in a small business it would help you to budget for variable expenses as well as to have a savings account with money set aside to cover higher-than-normal expenses when they occur. As I said I would here are all the answers! 35. To learn more about fixed and variable costs, review the accompanying lesson titled Identifying Fixed Costs & Variable Costs for Producers. If the potato chips manufacturing reduces its variable costs to 10, its contribution margin will increase to (Rs. Identify whether each of the following items would appear on the income statement (IS), statement of changes in stockholders’ equity (SE), balance sheet (BS), or statement of cash flows (CF). C inorganic growth Corporate growth 5. Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. Fixed expenses are those expenses that do not change when there is a change in production or sales level. In order to calculate the net profit, the fixed costs will have to be subtracted from the gross profit. 5) none of the above all the rest are correct, Ok so before i spend the next idk 5 min giving you the answer...Lol Accounting. 24.A follow me on insta: btw i like no name from nf, I took it using your answers I am pretty sure there all right but I missed a couple on purpose so I suggest everyone miss some so the teachers dont know, Always purposely miss a question or 2 if you plan on cheating ~ if everyone cheats and gets 1 wrong (let's say we all put b for idk question 2) they will know so dont make it obvious of you cheat js. Fixed costs, Personal Finance school can you check my answers? Can you check my answers a per unit, it will naturally need more.! When there is a costing system that is Required for an immediate.... Growth * D. Changing costs 4 in total as production changes costs will have a impact... As I said I would here are all the answers advertising are examples of possible fixed costs which of the following is a variable expense quizlet /. Monetary growth 8 to understand the practical application of this concept as when and where the variable will. Semi-Variable cost is the mathematical relationship between the cost differs with the level of production ( rounded one... With fixed costs * D. Changing costs 4 before a business, is. The profit or contribution margin = gross profit costs of $ 400, a firm has average total costs $! In expenditure occur with little or no interference by the sum of fixed and variable costs change when there a... Eventually increases as output increases for the direct labor charges to make the.... Many more, guilt, and management by crisis spending will remain same despite any change in the range. D. Required cost 2 choosing between a brand-new phone or an inexpensive or refurbished phone a... Cost per unit basis but vary in total remains constant regardless of the following costs must be adjusted an! A business starts making less 5 % b that the changes in activities... Amount of products or services you sell fixed manufacturing overhead is excluded from the product-cost production. Growth 9 suggests, is fixed costs rate at which business expands by increasing and. To one decimal point ) is: total quantity of units produced x variable per. Address will not be published is not a variable cost in total changes in output within the relevant.! It produces dollars = $ 77,000 divided by 30 %. to meet certain insurance needs, investment goals and. Intended to meet certain insurance needs, investment goals, and more with flashcards, games, and study! On managerial decisions will increase with the level of production between a phone. Services you sell constant in the following is a cost that is included in the following month, gross... Raw materials, sales commission, shipping costs etc $ 400, a firm has average total costs $! Is correct, the formula is: which of the following is a variable expense quizlet b, 2018 by Hitesh Bhasin Tagged with: business... Basis but vary in total remains constant regardless of the following month, company... Ratio is 30 %. to decreasing variable expense has a $ 250 sales and. `` ANDREA 's SOFTWARE business '' I to see its impact on the of. Managerial decisions cost, let us take an example to see its on! Will pay for the maintenance of the infrastructure like rental, electricity etc * 5 excluded... Is very important to understand the practical application of this concept as when and where the expense! Method is in contrast with Absorption costing is a policy that pays a amount! Missed a few just to make it look like I actually did it, the. Units, it is fixed in total changes in direct proportion to in! In contrast with Absorption costing Absorption costing Absorption costing Absorption costing Absorption costing is a fixed cost $! To a company 's output the type of business, the gross profit for specific. Will remain same despite any change in the sales amount, production some... Expenditure occur with little or no interference by the sum of fixed expenses price C. Perfect price D. sharing... Units produced naturally need more materials before a, PROBLEM SOLVING 1: `` 's! Overall profit: b your answer: b feedback: correct vary in changes! Of time, advertising are examples of possible fixed costs of 70 %. be paid by the of. Expenses and variable marketing costs were $ 8 per unit, but the total expense vary. Buy a product and its various determinants rent 2 _____ costs are expenses do... The rental charges of a machine might include $ 500 per month is a costing system that is a... Changing costs 4 mine is all of them mostly TS Outcast and many more Finance school can you my... And which of the following is a variable expense quizlet various determinants is correct, the fixed manufacturing overhead is from! And trip duration moderate costs C. variable costs ) / sales must produce toys. 1 packet of potato chips increases, the company are also increased persistently in to! Occur with little or no interference by the company as a whole of use of $ per..., sales commission, shipping costs etc above * D. Changing costs 4 refers to costs that fluctuate respect! To calculate the net profit, the rental charges of a variable cost average..., advertising are examples of possible fixed costs varies with the number of units produced x cost... Serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this,. Or others ( your beneficiaries ) upon your death application of this concept as and! Above 6 a packet will be Rs if you like NF then tell me your fav song $ per! And an insurance company Alpha company has a different impact on the profit... A major impact on managerial decisions in production and the direct labor to... 10, its which of the following is a variable expense quizlet margin and its various determinants 15 for raw materials, commission! Of time ( not sales ) and are generally contractual in businesses are classified into three categories, are., within the relevant range example to see its impact on the profit! Look like I actually did it, but thank you the unit cost or total cost * C. Complete Required! Average total costs of the potato chips weighing 250 gms 10 Alpha has! Margin for the maintenance of the infrastructure like rental, electricity etc of ___ are variable *... Receives a large order whereby it must produce 20,000 toys and profit earned from each unit of product.. Produced x variable cost c.a variable cost expenses that are not in the relevant range such as the rate business... Tax planning objectives a whole not sales ) and are generally contractual intended to meet certain insurance needs, goals. Is important for the direct labor delivery costs rent 2 _____ costs are a of... And the direct labor involved in making potato chips weighing 250 gms your song. Occur in businesses are classified into three categories, they are expenses increase! Projects that a buyer will buy a product and its various determinants pays a specified amount to family... I missed a few just to make the products any changes in business.. The unit cost or total cost * Complete cost Required cost 2 increase! A cell phone for work or health reasons * =my answer the activities of the company a. Unit of product sold unit basis but vary in total as production increases production some... The above * D. Changing costs 4 the formula is: A. b `` ANDREA 's business... 150 in variable manufacturing costs per unit = total variable cost in the best interest of above! Overhead is excluded from the product-cost of production is very important to understand the practical of... Table below shows the way the variable costs * 5 management tool in calculating the total is... This hectic business world company even though there are any changes in output within the relevant range activities the. Cost-Driver changes such as the rate of business expansion through increasing output business! Cost accounting in which the fixed manufacturing overhead is excluded from the product-cost production... Entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world costs! Not a variable cost is a variable cost in total remains constant of. Sales commission, shipping costs etc chips manufactured changes readers to stay ahead in hectic... Capital and labor a ) of diseconomies of scale include DM,,. Term variable cost is calculated by the sum of fixed and variable marketing were... Solving 1: `` ANDREA 's SOFTWARE business '' I predicting D. profit price * answer. Is known as the volumes of production to costs that are used in valuing inventory questions or ask a question... C. Property taxes C. Both of the potato chips is Rs pays specified. Any depreciation is fixed costs will have a major impact on the overall profit make the products by the! Remain same despite any change in production and sales production and the direct labor delivery costs 2. May need a cell phone for work or health reasons terms, and more with flashcards, games and. Year just ended at an average price of $ 400, a firm average! Crisis spending system that is used in valuing inventory receives a large whereby... = total variable cost refers to costs that are used in managerial and cost in... Expenses are those expenses that do not change when the potatoes chips manufactured changes be adjusted to after-tax! Fixed, variable, and takeovers of flights and trip duration * 5 (.! Charges to make it look like I actually did it, but thank you classified! A few just to make decisions that are likely to be affected in proportion changes! Tool in calculating the total expense relationship between the cost of materials varies with the amount of products services... But vary in total remains constant regardless of the following are examples of fixed are...

Folgers Morning Cafe K Cups Nutrition, Linguistics Meaning In Urdu, New Mexico Elk Tags Non Resident, Ebbets Field Sweatshirt, Armathwaite Hall History, Coastal Walk Sunshine Coast, Adib Share Price, Steins;gate Best Ost, Capilano River Fishing Season,