ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The sales budget is actually very simple. It is calculated as: sales budget = sales volume (units) × selling price per unit.

Detailed explanation-2: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

Detailed explanation-3: -This analytical process can require the use of the following material formulas to find individual and overall variances: Quantity variance = (Actual quantity x Standard price) − (Standard quantity x Standard price) Price variance = (Actual quantity x Standard price) − (Actual quantity x Actual price)

Detailed explanation-4: -Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.