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acc - 220 - week 6 Cost, Volume, and Profit Questions

acc - 220 - week 6 Cost, Volume, and Profit Questions -...

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Cost, Volume, and Profit Questions The workings of any (CVP) cost volume profit examination include five different categories, which include following total fixed costs, unit selling prices, sales mix, amount or level of activity, and variable cost per unit. The amount or level of activity is calculated by sales components or sales currency of any industry, and is calculated in an expenditure behavior examination. This examination revision of detailed costs takes action to transformation in the stage of industry activity. Variable costs are expenses that differ in entire openly and proportionately with transformation in the activity level. When the level amplifies 30 percent, total variable costs will amplify 30 percent. When the level of actions reduces by 40 percent, variable costs will decline 40 percent. Some of the variable costs include the following price of goods sold, freight-out for a merchandiser, gasoline in airline and trucking businesses, direct supplies and direct labor for a company, and sales costs. A variable cost might be described as a
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