What are the fixed costs and variable costs included in the cost?

Variable costs are those costs whose total amount varies linearly with the volume of business within the relevant range. Direct labor and direct materials are typical variable costs, and the total amount of their occurrence varies proportionally to the increase or decrease of business volume over a certain period of time, but the cost per unit of product remains the same.

The relevant range of variable costs.

Wai". In other words, the amount of variable costs incurred may change non-linearly when the relevant range is exceeded.

1. Fixed costs, also known as "fixed costs", are symmetrical of variable costs.

Fixed costs refer to those parts of costs that do not change with the output of products or the flow of goods within a certain range.

Most of the fixed costs are indirect costs, such as salaries and insurance premiums for business managers, depreciation and maintenance of fixed assets, office expenses, etc. When the volume of products or the flow of goods changes beyond a certain range, the fixed costs will increase or decrease. So, fixed costs are a relatively fixed concept, which we call "relative fixed costs".

Fixed cost refers to the total cost within a certain period and within a certain business volume, which is not subject to the increase or decrease of business volume.

Fixed costs are costs that will occur regardless of whether they are produced or not, such as depreciation. Variable impact and constant costs.

Fixed costs include enterprise management expenses, sales expenses, workshop production management personnel salaries, employee welfare expenses, office expenses, depreciation of fixed assets, repair costs, etc.

Variable costs include direct materials, direct labor, and manufacturing costs.

Cost is the value category of the commodity economy and is a component of the value of the commodity. If people want to carry out production and business activities or achieve certain goals, they must consume certain resources, and the monetary performance of the resources they spend and their objectification are called costs.

And with the continuous development of the commodity economy, the connotation and extension of the concept of cost are constantly changing and developing.

Fixed costs include depreciation of fixed assets, management salaries, interest, company management fees, etc., which are fixed every year, and the larger the output, the smaller the fixed costs (unit indirect costs) per share. It does not increase with the increase in output value.

Variable costs, including raw materials, workers' wages and surcharges, utilities, manufacturing costs, etc., increase with the increase in output value, but the variable costs per share (unit direct costs) do not change much. That is, direct consumption.

Fixed costs can generally be divided into two categories. One is binding fixed costs and the other is discretionary fixed costs.

1. Binding fixed costs, the costs that must be spent to maintain the company's ability to provide products and services, such as depreciation of plant and machinery and equipment, property tax, house rent, management personnel's salary, etc.

2. Discretionary fixed costs: fixed costs formed by the management authority of the enterprise before the beginning of the accounting year according to the budget amount of the plan period determined by the operating and financial resources, such as new product development expenses, advertising expenses, staff training expenses, etc.

Variable costs can generally be divided into two categories. One is technical variable costs and the other is discretionary variable costs.

1. Technical variable cost, technical variable cost refers to the unit cost determined by technical factors and the total cost changes proportionally with the change of consumption, which is usually manifested as the direct material consumption cost of the product.

2. Discretionary variable cost, discretionary variable cost refers to the variable cost that can be changed by the decision of the enterprise management authority.

Fixed cost refers to the total cost of fluid modification that remains unchanged within a certain period of time and within a certain business volume, regardless of the increase or decrease of business volume.

The characteristics of fixed costs are: within the relevant range, the total cost is not affected by the increase or decrease of output, but from the perspective of fixed costs apportioned per unit of product, it decreases correspondingly with the increase of output.

Variable cost refers to the total cost that increases or decreases proportionally to the increase or decrease of business volume.

However, the cost per unit of business or judgment remains the same.

In the product manufacturing cost, direct labor and direct materials are typical variable costs.

Characteristics of variable costs: the total amount of their occurrence changes in proportion to the increase or decrease of business volume in a certain period, but the consumption per unit of product remains the same.

There are three main differences: 1. The definition is different, variable cost refers to the cost paid to various variable factors of production, and fixed cost refers to the cost that remains unchanged; 2. The classification is different, the variable cost is divided into technical variable cost and discretionary variable cost, and the fixed cost is divided into binding fixed cost and discretionary fixed cost; 3. The application is different, most of the fixed costs are indirect costs, and variable costs are also called direct costs.

Fixed costs refer to expenses that are not directly related to changes in production within a certain range of output. The characteristics are: within the relevant range, the total cost remains the same, and the unit fixed cost is inversely proportional to the output.

Variable cost refers to the cost of the total cost that varies in direct proportion to the output. The characteristics are: the total cost is proportional to the output, and the unit variable cost remains unchanged.

Fixed cost, also known as fixed cost, refers to the total cost within a certain period of time and within a certain business volume, which can remain unchanged without being affected by the increase or decrease of business volume.

Variable cost refers to the cost paid to various factors of change, such as the cost of purchasing raw materials, electricity consumption, and workers' wages. This cost varies with production volume and is often not paid until the actual production process has begun.

Fixed costs include: enterprise management expenses, taxes, interest, public utilities expenses, sales expenses, workshop production management personnel salaries, employee welfare expenses, office expenses, heating expenses, lighting expenses, depreciation of fixed assets, repair costs, etc. Variable costs include:

The total amount of direct materials, direct labor, salesman's commission paid according to sales volume, loading freight, and packaging costs will increase or decrease proportionally to the increase or decrease of production.

Fixed cost characteristics.

1. The total cost does not change with the business volume, and is manifested as a fixed amount.

2. The fixed cost (i.e., unit fixed cost) borne by the unit business volume changes inversely proportional to the increase or decrease of the business volume.

Fixed cost, also known as fixed cost, is relative to variable cost, which refers to the cost that can remain unchanged in a certain period of time and within a certain range of business volume, without being affected by the increase or decrease of business volume.

Characteristics of variable costs.

The variable cost per unit remains unchanged regardless of volume changes.

The total variable cost changes in direct proportion to the change in business volume. Variable cost refers to the cost of the change in the amount of the product with the increase or decrease of the production and sales volume of the commodity.

Variable cost = sales revenue - cost of goods sold (variable production cost borne by sold products) - variable non-production cost - fixed cost (including production and non-production).