Changes in fixed costs fixed costs and variable costs by fdjerue7eeu


									Changes in fixed costs and variable costs fixed costs

  fixed cost variable cost decomposition
  fixed cost is fixed meaning the number of commodity production and sales are not
directly linked, to a certain number of times and within certain sales of its occurred
the same total cost of maintaining relatively stable. Features (1) in a certain period
and a certain number of sales within the total fixed costs remain the same;
  (2) the burden of fixed costs per unit of product to be produced with the product
sales increases. The meaning of the variable cost variable cost is the amount of its
occurrence with changes in commodity production and marketing changes in the
number of corresponding changes in cost. Features (1) unit variable cost, fixed;
  (2) changes in the total cost with the product in direct proportion to the increase of
production and sales increased. Decomposition Method】 【cost much you test fuel
  cost accounting used in Chinese enterprises is manufacturing cost. For volume-profit
analysis, the total cost needs to be broken down into fixed and variable costs, the
method of decomposition of individual cost and total cost of decomposition.
  decomposition method is based on individual cost accounting and a breakdown of
fixed and variable costs item by item to find, and then were aggregated to determine
fixed and variable cost approach.
  decomposition of the total cost (or high or low point method, variable cost rate of
decomposition), which compare two periods of sales revenue and total costs, then find
the variable cost rate, and thus a decomposition of the total cost of Methods.

  variable cost rate = (high point of the total cost - low total cost) / (high sales revenue
- low sales)
  variable costs = sales revenue × change cost rate
  fixed = total cost - variable cost / center>

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