Essays on Variable Cost

Variable cost is a cost that changes in proportion to a change in a company’s activity or business, while a fixed cost is cost that remains constant, regardless of any change in a company’s activity. In the given case Raw Materials would be variable cost, as it changes with a change of the volume of…

Many managers prefer to use variable costing for internal reporting and decision making due to its numerous advantages (Myers par. 1). Firstly, variable costing reports categorize costs based on their behavior, making them easier to comprehend. Additionally, variable costing statements aid in cost volume profit (CVP) analysis as they separate costs into fixed and variable…

The mixed cost is the cost that includes both the fixed cost and the variable cost. Mixed cost is also known as the semi variable cost. The mixed cost fluctuates with linearly with the changes in the activity. The fixed cost portion shows the minimum cost of the service. On the other hand variable cost…

Your discussion may include both internal and external factors that could influence this decision. There are various factors suggesting that Mystery segment should be discontinued, including both internal and external factors. Internally, the paramount issue with Mystery segment is that it accounts for the largest amount of loss for the company, with the figure stands…

Pectoral has utilized this as a business venture, in that the camera can be mounted so that the drone can now take aerial photos or provide live video of what is happening on the ground from an aerial perspective. However, instead of leaving the drones play like in size, they increased the scale and added…