is interest on capital a fixed cost or variable cost .why
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Answers
Answer:
United Airlines flies 4,56,705 passengers every week. A flight has a maximum passenger capacity of 467 and it completes 995 flights in a week. Are all flights carrying the maximum number of passengers?
Answer:
Answer:Variable Costs
Answer:Variable CostsVariable costs are any costs that a company incurs that are associated with the number of goods or services it produces. A company's variable costs increase and decrease with its production volume. When production volume goes up, the variable costs increase. But if the volume goes down, the variable costs follow suit. As noted above, examples of variable costs generally include:
Answer:Variable CostsVariable costs are any costs that a company incurs that are associated with the number of goods or services it produces. A company's variable costs increase and decrease with its production volume. When production volume goes up, the variable costs increase. But if the volume goes down, the variable costs follow suit. As noted above, examples of variable costs generally include:Calculating variable costs can be done by multiplying the quantity of output by the variable cost per unit of output. Suppose ABC Company produces ceramic mugs for a cost of $2 per mug. If the company produces 500 units, its variable cost will be $1,000. However, if the company doesn't produce any units, it won't have any variable costs for producing the mugs. Similarly, if the company produces 1000 units, the cost will rise to $2,000.
Answer:Variable CostsVariable costs are any costs that a company incurs that are associated with the number of goods or services it produces. A company's variable costs increase and decrease with its production volume. When production volume goes up, the variable costs increase. But if the volume goes down, the variable costs follow suit. As noted above, examples of variable costs generally include:Calculating variable costs can be done by multiplying the quantity of output by the variable cost per unit of output. Suppose ABC Company produces ceramic mugs for a cost of $2 per mug. If the company produces 500 units, its variable cost will be $1,000. However, if the company doesn't produce any units, it won't have any variable costs for producing the mugs. Similarly, if the company produces 1000 units, the cost will rise to $2,000.One important point to note about variable costs is that they differ between industries so it's not at all useful to compare the variable costs of a car manufacturer and an appliance manufacturer. That's because their product output isn't comparable. If you're going to compare the variable costs between two businesses, make sure you choose companies that operate in the same industry.
Fixed Costs
Fixed CostsFixed costs remain the same regardless of whether goods or services are produced or not. Thus, a company cannot avoid fixed costs. As such, a company's fixed costs don't vary with the volume of production and are indirect, meaning they generally don't apply to the production process—unlike variable costs. The most common examples of fixed costs include lease and rent payments, property tax, certain salaries, insurance, depreciation, and interest payments.
Fixed CostsFixed costs remain the same regardless of whether goods or services are produced or not. Thus, a company cannot avoid fixed costs. As such, a company's fixed costs don't vary with the volume of production and are indirect, meaning they generally don't apply to the production process—unlike variable costs. The most common examples of fixed costs include lease and rent payments, property tax, certain salaries, insurance, depreciation, and interest payments.To demonstrate, let's use the same example from above. In this case, suppose Company ABC has a fixed cost of $10,000 per month to rent the machine it uses to produce mugs. If the company does not produce any mugs for the month, it still needs to pay $10,000 to rent the machine. But even if it produces one million mugs, its fixed cost remains the same. The variable costs change from zero to $2 million in this example.
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