Dell variable and fixed costs

Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production, sales, inventory pile up etc. A portion of these expenses are usually consists line rent.

The company applies manufacturing overhead on the basis of machinehours. For each cost, indicate which of the following classifications best describe the cost. A total of 30 direct labor-hours and machine-hours were worked on the job. The second competitive advantage arena, demand advantages, is a bit less clear.

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telephone bill fixed or variable cost

Certainly no companies benefit from network effects or the difficulty of finding a substitute provider. Market is not really excited about the prospects of any IT hardware or services company. Again, the consumer segment accounts for only 3. In most organizations, the bulk of all expenses are fixed costs, and represent the overhead that an organization must incur to operate on a daily basis.

Here are a number of examples of variable costs, all in a production setting: Direct materials. Conversely, a high proportion of fixed costs requires that a business maintain a high sales level in order to stay in business.

Coming to the question, depreciation expense or depreciation cost can either be fixed or variable and this depends on the method adopted There are no supply advantages as each competitor is selling products and services that perform the same function.

Warehouse fixed and variable costs

There are only three types of competitive advantages incumbent firms have: supply advantages, demand advantages, and economies of scale. There are no supply advantages as each competitor is selling products and services that perform the same function. Explain the implications of absorption and variable costing for cost-volume-profit analysis. This advantage is unlikely to exist as buyers are more likely to focus on price, performance, and reliability rather than brand name. However, if they are paid salaries where they are paid no matter how many hours they work , then this is a fixed cost. Disclosure: No positions This entry was posted in Stocks and tagged dell , hpq , ibm. Evaluate absorption and variable costing. If product B is not available one week, how many units of product A must be sold to meet the salary goal? But money expenses are not the only expensesincurred on the production Many cost predictions techniques are Prepare an income statement under variable costing.
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Dell: Declining Consumer Segment Obscures Excellent Services Business