Fixed and Variable Costs (Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a recent...

Question

Fixed and Variable Costs    (Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a  recent speech said, "I rarely see a real variable cost or a truly fixed  cost." What did she mean? Include in your response an explanation of  the difference in behavior of variable and fixed cost, including an  example to illustrate your explanation. Your initial post should be 200  to 250 words.

Aarti J · Accepted Answer

Discussion
Variable cost is the cost which varies with the level of the output. These are the costs that are dependent on the production volume of the company, these cost increases with the increase in the volume of production and decreases with the decrease in the volume of production. The per unit variable cost remains constant. These includes different costs like direct materials, direct labor, variable selling and manufacturing overheads.

Fixed and Variable Costs (Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in...

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