Question

There are certain costs which are neither fixed nor variable. Justify the statement ​. PLEASE give relevant ANSWER...​

Answer 1

Answer:

Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. Fixed costs, as its name suggests, is fixed in total i.e. irrespective of the number of output produced. Variable costs vary with the number of output produced. Semi-variableis the type of costs, which have the characteristics of both fixed costs and variable costs.

Many cost accounting students, are not able to bifurcate fixed and variable cost. Fixed costs are one that do not change with the change in activty level in the short run. Conversely, Variable cost refers to the cost of elements, which tends to change with the change in level of activity. While working on costs of production, one should know the difference between fixed cost and variable cost. So, take a read of the given article in which we have compiled all the important points of distinction in tabular form along with examples.

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