# Which of the following is not a fixed cost? (2023)

## Which of the following is not a fixed cost?

Raw material is a variable input, so its cost is a variable cost.

(Video) What is a Fixed Cost?
What are 4 fixed costs?

Examples of Fixed Costs

Fixed costs include any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.

(Video) Fixed Costs
(Edspira)
Which of the following is a fixed cost?

Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.

(Video) With reference to a power stations which of the following is not a fixed cost
(Electrical Engineering MCQ)
Which of the following is not a fixed cost direct materials?

Direct material cost is not a fixed cost; instead, it is a variable cost because this cost varies with the level of output.

(Video) How to Calculate a Total Fixed Cost
(HubSpot Marketing )
Which is a fixed cost quizlet?

A fixed cost is a cost that in total remains constant as volume of activity changes but on a per unit basis varies inversely with changes in volume of activity.

(Video) Costs - all 7 explained - TFC, TVC, TC, AFC, AVC, AC and MC
(Ingr Nomics)
What are fixed costs 3 examples?

Examples of fixed costs include rent, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.

(Video) Fixed Cost | Variable Cost |Semi Variable Cost Classification of Cost |Fixed vs Variable Cost
Which of the following is not a variable cost?

Depreciation of factory equipment does not depend on the number of units produced and hence could not be considered a variable cost. Variable costs are those costs that vary directly proportional to the number of units or level of activity.

(Video) Fixed Cost Vs Variable Cost | Difference Between them with Example, Graph & Comparison Chart
(Key Differences)
What are examples of variable costs?

Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs.

(Video) What are Fixed Costs?
Are wages a fixed cost?

Wages paid to workers for their regular hours are a fixed cost. Any extra time they spend on the job is a variable cost. In a factory that makes dresses, the variable costs are the fabric and the labor used to make the dresses.

(Video) Business Costs (Fixed Costs and Variable Costs) Explained
(tutor2u)
Are utilities a fixed cost?

Some utilities, such as electricity, may increase when production goes up. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.

(Video) Fixed Costs vs Variable Costs
(365 Financial Analyst)

## What is the meaning of fixed cost?

Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service. As a result, fixed costs are considered to be indirect costs.

(Video) Fixed Cost and Variable Cost - Managerial Accounting Problems 8
Which of the following is most likely to be a fixed cost?

Answer and Explanation: The correct answer is option d. property taxes. A fixed cost does not change with the production volume within a relevant range for a given period of time.

How do you find fixed cost examples?

How to Calculate Fixed Cost
1. Fixed costs = Total production costs — (Variable cost per unit * Number of units produced)
2. \$4,000 total production costs — (\$3 * 1,000 tacos) = \$1,000 fixed cost.
3. Average fixed cost = Total fixed cost / Total number of units produced.

Is direct material a fixed cost?

The statement is FALSE.

The cost of direct material is an example of a variable cost. Recall that a fixed cost is a cost that stays the same in total and therefore decreases on a per-unit basis when the activity level increases.

What is an example of a direct fixed cost?

Direct costs can also be fixed costs, such as rent payments that are directly tied to a production facility. Also, salaries of mangers or supervisors might also be included in direct costs, particularly if they're tied to a specific project.

What are examples of fixed and variable costs?

Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

What are all the fixed and variable costs?

Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

What is an example of a fixed cost and a variable cost?

Fixed costs are expenses that remain the same regardless of the level of production, while variable costs change based on the production output. Rent, advertising, and administrative costs are examples of fixed costs, while examples of variable costs include raw materials, sales commissions, and packaging.

What are 4 variable costs?

Variable Costs In Economics Explained

In contrast, variable expenses are not fixed (they vary over time). Variable expenses are based on business operations —internal factors and external factors. Variable expenses include raw materials, production costs, delivery costs, packaging, and labor tariffs.

What is an example of a variable cost quizlet?

What are examples of variable costs? Cost of goods sold for a merchandising company, direct materials, direct labor, variable elements of manufacturing overhead, and selling and administrate costs such as commissions and shipping costs.

## Is rent a fixed or variable cost?

Examples of fixed expenses include: Rent or mortgage payments. Car payments. Other loan payments.

Is water a fixed cost?

Utilities: Expenses like internet, water, electricity, and heating are all fixed costs for accounting purposes.

Overhead costs, also known as fixed costs or just overheads, are expenses a company is committed to paying regardless of its output.

Is gas a fixed cost?

Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month.

Is food a fixed expense?

Some examples of variable costs include: Food costs, such as groceries and dining out.

Is water a variable or fixed cost?

Utilities are a variable cost because the amount of money spent may change depending on the amount of electricity and water used during the billable time period.

Is office rent a fixed cost?

What Are Fixed Costs? Fixed costs are the costs associated with your business's products or services that must be paid regardless of the volume you sell. 1﻿ One example of a fixed cost is overhead. Overhead may include rent for the space your company occupies, such as your office space or your factory space.

Why is insurance a fixed cost?

The firm is mandatory to pay the insurance premiums to protect it, and thus the insurance premiums are not concerned with the production processes. So, the insurance premiums are classified as fixed costs because they do not change with the changes in the output produced by the firms.

Is marketing a fixed cost?

Marketing expense is categorized as a fixed cost since companies allocate money that they plan to spend over a particular period and will aim to spend the monthly or annual marketing budget. At the same time, there are some elements of marketing expense can be considered variable.

What are the 4 types of cost?

Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

## What are the four major costs?

Purchase cost, holding cost, ordering cost, and shortage costs are the four major costs that are related to inventory.

What is an example of a total fixed cost?

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay. For example, suppose a company leases office space for \$10,000 per month, rents machinery for \$5,000 per month, and has a \$1,000 monthly utility bill. In this case, the company's total fixed costs would be \$16,000.

What are the 5 types of cost?

Types of Costs
• Fixed Costs: Fixed costs stay the same and do not change throughout the project lifecycle. ...
• Variable Costs: Variable costs are costs that change with the amount of work involved with a project. ...
• Direct Costs: Direct costs are expenses that are billed directly to the project. ...
• Indirect Costs: ...
• Sunk Costs:
Apr 11, 2023

What are the 7 types of cost?

• Direct Costs.
• Indirect Costs.
• Fixed Costs.
• Variable Costs.
• Operating Costs.
• Opportunity Costs.
• Sunk Costs.
• Controllable Costs.

What are 10 types of costs?

The different types of cost concepts are:
• Outlay costs and Opportunity costs.
• Accounting costs and Economic costs.
• Direct/Traceable costs and Indirect/Untraceable costs.
• Incremental costs and Sunk costs.
• Private costs and social costs.
• Fixed costs and Variable costs.

What are 5 examples of variable costs?

Examples of variable costs
• Production Supplies. Production supplies, such as machinery oil, are consumed based on the amount of machinery usage, so these costs vary with production volume.
• Billable Staff Wages. ...
• Commissions. ...
• Credit Card Fees. ...
• Freight Out.
Jun 2, 2022

What are 3 variable expenses?

Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

Which is a variable cost?

Variable costs are costs that change as the quantity of the good or service that a business produces changes. Variable costs are the sum of marginal costs over all units produced. They can also be considered normal costs.

What are the four 4 cost elements that influence total cost of quality?

There are four broad components: prevention costs, internal failure costs, external failure costs, and appraisal costs.

How do you find fixed cost?

Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.

## What is fixed cost per unit?

Fixed Cost Per Unit Formula

The fixed cost per unit is the total amount of FCs incurred by a company divided by the total number of units produced. Fixed Cost Per Unit = Total Fixed Cost ÷ Total Number of Units Produced.

## References

You might also like
Popular posts
Latest Posts
Article information

Author: Kareem Mueller DO

Last Updated: 26/09/2023

Views: 6408

Rating: 4.6 / 5 (46 voted)

Author information

Name: Kareem Mueller DO

Birthday: 1997-01-04

Address: Apt. 156 12935 Runolfsdottir Mission, Greenfort, MN 74384-6749

Phone: +16704982844747