Concept introduction:
Variable cost:
Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.
Fixed cost:
Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers,
Mixed cost:
Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.
Requirement 1
To identify:
The type of cost and the cost per unit.
Concept introduction:
Variable cost:
Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.
Fixed cost:
Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.
Mixed cost:
Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.
Requirement 2
The total fixed cost per month and variable cost per unit
Concept introduction:
Variable cost:
Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.
Fixed cost:
Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.
Mixed cost:
Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.
Requirement 3
The linear cost equation.
Concept introduction:
Variable cost:
Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.
Fixed cost:
Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.
Mixed cost:
Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.
Requirement 4
The cost at given units of production
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MANAGERIAL ACCOUNTING W/CONNECT
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