COST ACCOUNTING
COST VOLUME PROFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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sales less cost and expenses
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M/S ratio time marginal income
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variable cost and expenses time M/S ratio
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marginal income less fixed cost and expenses
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Detailed explanation-1: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.
Detailed explanation-2: -What is a variable cost? Variable costs are the sum of all labor and materials required to produce a unit of your product. Your total variable cost is equal to the variable cost per unit, multiplied by the number of units produced.
Detailed explanation-3: -Question 21Which of the following is not a variable expense? Management feesUtilitiesJanitorial expensesReal estate taxesCorrect!
Detailed explanation-4: -Salaries are not variable costs. They are fixed because they are paid out regularly and are independent of revenue level or production volume. But, other forms of labor are dependent on these factors, according to Accounting Tools.