Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

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Answer 2

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

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Answer 3

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

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Answer 4

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 8

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer 12

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 13

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 14

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

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Answer to Problem 1Q

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