When Can Fixed Cost Be Consider To Be A Variable Cost? - Education - Nairaland
Nairaland Forum › Nairaland General › Education › When Can Fixed Cost Be Consider To Be A Variable Cost? (618 Views)
| When Can Fixed Cost Be Consider To Be A Variable Cost? by coolyemisi(op): 11:48am On Apr 19, 2013 |
when can fixed cost be consider to be a variable cost? |
| Re: When Can Fixed Cost Be Consider To Be A Variable Cost? by olawalebabs(mod): 11:51am On Apr 19, 2013 |
With my little knowledge of Accounting, in the long run fixed cost will turn to variable cost. |
| Re: When Can Fixed Cost Be Consider To Be A Variable Cost? by ednut1(m): 3:19pm On Apr 19, 2013 |
it is called stepup fixed cost. a fixed cost is con sided variable or semi variable, when d occurence of a certain level of production or new project/ additions to current project or production, incurs additional fixed cost. eg the fixed cost for ade plc is 7500 per annum, full production volume 20000 units. lets say actual production hover around 12k to 18k units. but there is a new machine dat can increase d 20000, to 25000. but d new machine will make fixed cost to be 9000 per annun. d additional 1500 fixed cost is variabl, HOPE U NEVER LOST IN MY EXPLANATION, AM A BAD TEACHER BUT BRILLIANT STUDENT HEHEHEHE |
| Re: When Can Fixed Cost Be Consider To Be A Variable Cost? by coolyemisi(op): 7:52pm On Apr 20, 2013 |
Ednut1 am seriously lost, throw more lite please |
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