Question

behavior of variable cost​

Answer 1

Answer:

A variable cost is a company's cost that is associated with the amount of goods or services it produces. A company's variable cost increases and decreases with its production volume. When production volume goes up, the variable costs will increase. On the other hand, if the volume goes down, so too will the variable costs.

Variable costs are generally different between industries. Therefore it's not useful to compare the variable costs between a car manufacturer and an appliance manufacturer because their product output isn't comparable. So it's better to compare the variable costs between two businesses that operate in the same industry, such as two car manufacturers.

Variable costs can be calculated by multiplying the quantity of output by the variable cost per unit of output. So, suppose company ABC produces ceramic mugs for a cost of $2 a mug. If the company produces 500 units, its variable cost will be $1,000. However, if the company does not produce any units, it will not have any variable cost for producing the mugs. Similarly, if the company produces 1000 units, the cost will rise to $2,000. This calculation is simple and obviously does not take into account any other costs such as labor or raw materials.

Examples of variable costs include labor costs, utility costs, commissions, and the cost of raw materials that are used in production.

Companies may have what are called semi-variable costs, which are a mixture of both variable and fixed costs.

Explanation:

Answer 2

Answer:

What are cost behavior?

Cost behavior is an indicator of how a cost will change in total when there is a change in some activity. ... Fixed costs. The total amount of a fixed cost will not change when an activity increases or decreases. Mixed or semivariable costs. These costs are partially fixed and partially variable.

What are Variable Costs?

Variable costs are expenses that vary in proportion to the volume of goods or services that a business produces. In other words, they are costs that vary depending on the volume of activity. These costs increase as the volume of activities increases and decrease as the volume of activities decreases.

Formula for Variable Costs

Total variable cost = Total quantity of output x Variable cost per unit of output

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