Finance Assignment 代写 Definition of fixed cost and variable cost

Finance Assignment 代写 Definition of fixed cost and variable cost

财务论文范文 固定成本和可变成本的定义的Essay  AssignmentAUS 往年给英国伦敦的王**同学的ESSAY  注现已毕业

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Fixed cost (FC): is a cost that remains constant, in total, regardless of changes in the level of activity. Fixed costs are not affected by changes in activity. Consequently, as the activity level rises and falls, total fixed costs remain constant unless influenced by some outside force. But fixed cost per unit decreases as the activity level rises and increases as the activity level falls. (Garrison etal., 2006, P49). Fixed costs include salaries of executives, interest expense, rent, depreciation, and insurance expenses. .

Variable cost (VC): is a cost that varies, in total, in direct proportion o changes in the level activity. The activity can be expressed in many ways, such as units produced, units sold, miles driven, beds occupied, lines of print, hours worked and so forth. But variable cost per unit remains constant. ((Garrison etal., 2006, P48).

Direct cost, indirect cost and overhead costs

Direct costs: is a cost that can be easily and conveniently traced to the particular cost object under consideration. The concept of direct cost extends beyond just direct materials and direct labor. (Garrison etal., 2006, P50). Example: the salary of supervisor in marketing department is the direct cost for marketing department. The salary is likely the same each month not depend on the quantity of sales product.

Indirect costs: is a cost that cannot be easily and conveniently traced to the particular cost object under consideration. (Garrison etal., 2006, P50).  Each business has its own method of allocating indirect costs to different products, sources of sales revenue and business units. Business managers and accounts should always keep an eye on the allocation methods used for indirect costs. Example: Depreciation on the production machine is also an indirect product cost, it stays the same each year not depend on the volume produced on the machine.

Costs can be direct and indirect depending on the cost object: product, department, and others such as division, customer, or geographic market. The total amount of the cost remain the same as volume changes, it is fixed cost. It is a variable cost if the total cost change in proportion to the change in the activity or volume.

Overhead costs: the indirect recurring costs of running a business that are not linked directly to the goods or service produced and sold. Overhead costs can include payments for the rent of premises, utility bills, and employees’ salaries.

间接成本:是一种成本,不能方便地和方便地追溯到正在考虑的特定的成本对象。(驻军等。,2006,P50)。Â每个企业都有自己的间接费用分配到不同的产品的方法,销售收入和Â业务单位的来源。Â业务经理和客户应随时关注用于间接成本的分配方法。例如:生产机器上的折旧也是一种间接的产品成本,它保持不变,每年不依赖于机器上产生的卷。

成本可以直接和间接取决于成本对象:产品、部门、Â等部门,客户,或地理市场。该Â成本总额保持体积的变化一样,它是固定成本。这是一个可变的成本,如果总成本的变化,在活动或体积的变化。

间接成本:经营业务的间接成本,直接与生产和销售的商品或服务没有直接联系。开销成本可以包括租金的租金、公用事业账单和雇员的工资。

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