Fixed and variable cost
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 lowers your unit costs are. 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.
When responding to this discussion question, assume that the fuel cost for a ton mile is the same regardless of the type of vehicle. Also assume that there are no daily changes in the price of fuel at the pump.
Purchase this Solution
Solution Summary
The solution explains a discussion question relating to fixed and variable cost.
Solution Preview
You should disagree.
A cost is a fixed cost or a variable cost has to be seen in respect of cost in totality and not on per unit basis. The reason is that it is the total cost which is ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.