Examples of using Variable costs in English and their translations into Vietnamese
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Types of Variable Costs.
Variable costs change according to volume of production.
The gap between the fixed costs andthe total costs line represents variable costs.
Mixed and variable costs will increase by 25%.
Capital-intensive industries tend to have high levels of operating leverage,which is the ratio of fixed costs to variable costs.
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In contrast, variable costs change as a business ramps its operations up or down.
The use of music as compensation also illustrates how thereis sometimes a trade-off between fixed costs and variable costs.
They can also change the variable costs for each unit by adding more automation to the production process.
The difference, therefore, between contribution andprofit is that contribution shows the difference between the sales price and variable costs for specific products.
Along with variable costs, fixed costs make up one of the two components of total cost. .
In a production facility,labor and material costs are usually variable costs that increase as the volume of production increases.
Variable costs, if known, can be combined with fixedcosts to carry out a break-even analysis on a new project.
Fixed costs are those that do not change, and variable costs are those that change according to your business's activity and level of production.[1].
Both scenarios are favorable because it shows that the companyis able to generate enough revenue to pay its variable costs and will have funds to cover its fixed costs. .
Knowing how to calculate variable costs will help you reduce the costs incurred per production unit, making your business more profitable.
Volume that is lower and/or higher than the respectiverelevant range can mean different variable costs per unit and different selling prices per unit.
An avoidable cost refers to variable costs that can be avoided, unlike most fixed costs, which are typically unavoidable.
Short-run average cost will vary in relation to the quantityproduced unless fixed costs are zero and variable costs constant.
It is also equal to the sum of average variable costs(total variable costs divided by Q) plus average fixed costs(total fixed costs divided by Q).
Natural monopolies tend to exist inindustries with high capital costs in relation to variable costs, such as water supply and electricity supply.
The use of a hybrid panel is preferable because it allows to cover a part of the electricity demand of the heatpump and reduce the energy consumption and, consequently, the variable costs of the system.
He says:"The bankwill estimate its costs based on its fixed costs, variable costs, the cost of their employees, the rent and so on and so forth.
In order to calculate the Break Even Point within the Break Even Analysis, you need certain data, namely the fixed costs, the selling price of the product and the variable costs per product.
In general,analog experiments have low fixed costs and high variable costs, and digital experiments have high fixed costs and low variable costs(Figure 4.18).
This is because for an office to process large printing orders, there are a number of fixed costs, such as the costs of machinery,as well as variable costs, such as the cost of ink and wages.
If the large specialized machineis billed out to customers at $200 per hour and the variable costs of operating the machine are $80 per hour, the contribution margin and the opportunity cost is $120 per machine hour.
You start with AOV, and then subtract the cost per transaction associated with that order(inferred from demand- and supply-side CPAs)as well as any associated variable costs, such as customer service.
The fixed costs include the cost of machines or rent, while the variable costs are those that change over a period of time like cost of labour or credit card fees.
Make sure that they include the costs of all known equipment, labor, and supplies,including any variable costs that could occur for replacing parts or for labor overruns.