COST ACCOUNTING
VARIABLE COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Explicit costs
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Variable cost divided by output
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The increase in output that arises from an additional unit of input
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Costs that do not vary with the quantity of output produced
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Detailed explanation-1: -In Economics, the average variable cost is the variable cost per unit. Average variable cost is determined by dividing the total variable cost by the output. The firms use the average variable cost to determine when to stop their production in the short term.
Detailed explanation-2: -Average Variable Cost (AVC)= VC/Q Where, VC is the Variable Cost, Q is the quantity of output produced.
Detailed explanation-3: -Average variable cost (AVC) is the variable cost per unit of total product (TP). To calculate AVC, divide variable cost at a given total product level by that total product. This calculation yields the cost per unit of output.
Detailed explanation-4: -Average Variable Cost = Total Variable Costs / Total Output The current variable cost will be higher than before; the average variable cost will remain something in between.
Detailed explanation-5: -Average variable cost (AVC) is calculated by dividing variable cost by the quantity produced.