Fixed and variable costs
Not what you're looking for?
As I understand it, costs such as the salary of the vice president of transportation operations are variable because the more traffic you handle, the less your unit cost. In contrast, costs such as fuel are fixed because each ton-mile should entail consumption of the same amount of fuel and hence bear the same unit cost." Do you agree? Explain. Assume that the fuel cost for a ton mile is the same regardless of the type of vehicle as well as daily changes in the price of fuel at the pump.
Purchase this Solution
Solution Summary
The solution discusses what can be acertained as fixed cost?
Solution Preview
One cannot with the statement. Salary of the vice president is fixed and not variable. Imagine there is strike in the company. That means no business for days till the strike ends. But ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.