Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Define variable cost and fixed cost. Give an example of each?

Define cost behavior. Define and discuss how variable cost, fixed cost and mixed cost is different. Provide an example of each.

Explain a linear cost function.

Answer 2

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 5, Problem 1Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 8

Expert Solution & Answer

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept introduction:

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced.

The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

To discuss:

The meaning of each type of costs

Answer 12

Answer to Problem 1Q

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 13

Explanation of Solution

There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

The meaning of each type of costs is as follows:

Variable costs: Variable costs change with the level of activity.
Fixed Costs: Fixed costs remain same irrespective of the level of activity.
Step Costs: Step Costs remain same up to a level and change after that.
Mixed Costs: The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.

Answer 14

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Define each of the following terms variable cost, fixed cost, step cost, and mixed cost. Give an example of each.

Concept explainers

Videos

Answer to Problem 1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 5 Solutions