Question

Variable and Fixed costs

06 Sep 2023
Answer :
Word Count : 528

Variable costs and fixed costs are two key components of a company's total costs in accounting and cost analysis. They represent different types of expenses that a business incurs, and understanding the difference between them is essential for effective financial management. Here's a breakdown of the differences between variable and fixed costs:

  1. Nature of Costs:

    • Variable Costs: Variable costs are expenses that change in direct proportion to changes in production or sales volume. As a company produces more units or experiences higher sales, variable ___ _______ _______ _____ ______ _____ _______ _________ _____ _________ __________ _______.
      ____ _______ _____ _____ _______ ______ ____ ______ ____ _____ _________ _________.
      ____ ___ ___ ____ ____ ______ _______ _________ ____ _____ ____.
      ___ ________ _______ ___ ___ ____ ___ ___ ______ _____ _______ ______.
      _________ ______ _______ _________ ____ ____ ___ _____ _________ ______ ______ ____.
      ______ ___ ______ _______ ___ _________ ________ ________.
      __________ _________ _____ ___ __________.
      __________ _____ ________ _____ ________ ____ ________ _________ ___.
      _________ ________ ______ ______ _________ ________ ______ _____ _____ ____ _________.
      ___ __________ ________ _____ ______ ___ ______ _____.
      _____ _______ ___ ________ _________.
      _____ _______ ___ _______ _____.
      _________ _________ ______ _________ _________ ___ _______ ______ ____ _____ _______ ______.
      ___ _________ ___ ____ ___ ____ _________ ______ ____ _________ ______ ____.
      _________ ______ ___ ___ ___ ______ ____.
      _____ _____ ______ ______ ___.
      ________ ____ ________ _________ ____ ________ ________ ________ _________ _______ _________.
      ___ ________ __________ _____ ________ __________ _________ ____ _________ _____ ______.
      _________ ______ _________ _____ ____ __________ __________ ___ _______ ________.
      ______ ______ ________ ______ _________.
      __________ _______ __________ _________ _________ __________ ______ ______ __________.
      ____ ________ ____ __________ ________ ________ ________ ________ ______.
      ________ _______ _________ ______ ____ ______ _______ _____ ____ _____ _____ _______.
      __________ _______ ________ ______ _____ _________ _______ _________ _______ _____ ______.
      _______ ________ __________ _____ _______ _________ ______ _______ _______ ________.
      ________ _________ _______ ________ ____ __________ ___ __________ ____.
      _________ _________ ______ _____ _________ ________ ______ ___ _______ _____ __________ _______.
      ___ ______ __________ ________ __________ ____ ____.
      ___ __________ ___ _______ ________ _________ ________ ____ _________.
      _____ ________ ________ ______ ___ _________ ________ _________ ___.
      ____ ____ ___ _________ ______ _______ ___.
      ____ _____ _________ ___ ___ ____ ______ ______ _____.
      ___ _________ _________ ________ ________ __________ ____.
      ___ _____ _________ ___ ___ _________ ___ _______ ____ ____ _____ _____.
      _________ _________ ___ ______ ___ ______ _________ _____ _________ __________ _____ ______.
      _______ __________ _____ _______ ____ _____ _____ ______ _________.
      ______ ______ ______ ____ __________ _______.
      ____ ________ __________ ______ ______ ________.
      ____ ___ _________ ___ ___ _____ ______ _________ ____ ___ ___.
      _________ _______ __________ _________ __________ ____ _____ ___.
      __________ _____ ______ _____ __________ ______ _____ ____.
      ___ __________ _____ __________ ___ ______.
      ________ _______ ______ _______ __________ ___.
      _________ ________ ________ _______ _____ _______ ______ ____ ______ ______.
      __________ _________ ____ __________ _________ __________ ____ ____ ______.
      ____ _____ _______ _________ __________ _______.
      _________ ______ __________ __________ ___.
      ____ _____ ___ _______ ______ ________ ___ ________ _____.
      _________ ________ ___ _______ ___ _____ ________ __________ _________ _________ __________ ___.
      ____ _____.
      Get Full Answer on WhatsApp

Related Questions

The Standard Cost of Chemical mixture ‘PQ’ is as follows:
40% of material P @ Rs.400 per kg. 60% of material Q @ Rs.600 per kg.
A standard loss of 10% is normally anticipated in production.
The following particulars are available for the month of March, 2004.
180 kgs of material P have been used @ Rs.680 per kg
220 kgs of material Q have been used @ Rs.360 per kg.
The actual of production of ‘PQ’ was 369 kgs.
Calculate the following variances:
a) Material Price Variance
b) Material Usage Variance
c) Material Mix Variance
d) Material Yield Variance

Cash Budget and Master budget

In what ways can we analyse sales variances. Explain in detail.

Explain how the variance analysis relating to overheads differ from that relating to material and labour

Following in the Trial Balance of a limited Company as at 31st December, 2021

Particulars Debit Credit
Share Capital   4,00,000
Cash in hand 6,200  
Rent 5,300  
Prepaid Expenses 4,600  
Repairs & Maintenance 8,600  
Advances from Customers   50,000
General Reserve   3,00,000
Raw Materials at Cost 2,67,000  
Sundry Creditors 3,40,000  
Plant and Machinery 4,30,000  
Power 8,800  
Travelling and Conveyance 4,100  
Auditors’ Fees 1,500  
Cash at Bank 8,000  
Land 30,000  
Provision for Taxation 2,10,000  
Furniture 12,200  
Staff advances 5,300  
Sundry Debtors 1,40,000  
Misc. Income 54,600  
Finished Goods at cost 3,10,000  
Income-tax Advances 3,00,000  
Misc. Expenses 61,400  
Raw Materials Consumption 28,60,000  
Sales 42,30,000  
Development Rebate Reserve 1,00,000  
Building 74,100  
Salaries, Wages &Bonus 11,60,000  
Cash Credit from Bank 12,500  
Total 56,97,100 56,97,100

The following additional information is also available:

i) The authorized capital of the company is 80,000 equity shares of Rs. 10 each
of which 50% has been issued and has been recommended by the directors.
ii) A dividend of 15% on the paid-up capital has been recommended by the
directors.
iii) The closing stock of finished goods at cost is Rs. 5,60,000.
iv) The development rebate reserve is no longer required.
v) Depreciation on plant and machinery amounting to Rs. 43,000 on furniture
amounting to Rs. 1,300 and on building amounting to Rs. 3,800 has been
debited to miscellaneous expenses.
vi) Surplus in profit and loss account after proposed dividends, is to be transferred
to general reserve.
vii) Income-tax assessment for a prior year has been completed, fixing the income
tax liability at Rs. 1,55,000 (against which a provision of Rs. 80,000 and
advances of income tax of Rs. 70,000 exists in the books).
You are required to prepare:
i. Profit and loss account for the year ended 31st December, 2004; and
ii. Balance sheet in the prescribed form as on that date.

State the conditions under which the income statement prepared with absorption costing and marginal costing will give different results.

CVP analysis and Breakeven analysis 

IGNOU Solved Assignments Assignments Ignou Projects Project Previous Year Solved Exam Papers Notes Notes Sample Question Papers Sample Question Papers
Login Cart
IGNOU NEWS
Assignment Submission Last Date Extended Till 30 June 2026 Click Here★★★IGNOU June 2026 TEE Date Sheet Released Click Here★★★
Top
📞
Call Support Instant phone assistance Variable and Fixed costs
→
🟢
WhatsApp Chat Fast live messaging
→
Email Us Business enquiries & support
→