How can I find the variable cost if I have the information about fixed cost and...
How can I find the variable cost if I have the information about fixed cost and difference cost?
please only answer when 100% sure about answer. Thanku!!
Homework Answers
- The change in cost resulting from the adoption of an alternate course of action or due to change in the level of activity is called differential cost.
- Change in cost may be due to change in fixed costs & variable costs. Which means differential cost could be the aggregate of change in fixed and Variable cost.
Differential cost = change in fixed costs + change variable costs
If you've information about fixed Cost component in the differential cost, then
Variable cost = Differential cost - Fixed Cost
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How can I find the variable cost if I have the
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