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    This document discusses different types of costs. Fixed costs, also called overhead costs, are costs that remain constant even if the quantity of output varies in the short run, such as rent and insurance. Variable costs are costs that vary with the quantity produced, such as materials and labor. Average cost is calculated as the total cost divided by the quantity produced and includes both fixed and variable costs.

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    This document discusses different types of costs. Fixed costs, also called overhead costs, are costs that remain constant even if the quantity of output varies in the short run, such as rent and insurance. Variable costs are costs that vary with the quantity produced, such as materials and labor. Average cost is calculated as the total cost divided by the quantity produced and includes both fixed and variable costs.

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    This document discusses different types of costs. Fixed costs, also called overhead costs, are costs that remain constant even if the quantity of output varies in the short run, such as rent and insurance. Variable costs are costs that vary with the quantity produced, such as materials and labor. Average cost is calculated as the total cost divided by the quantity produced and includes both fixed and variable costs.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    2 views2 pages

    Busi

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    xx
    This document discusses different types of costs. Fixed costs, also called overhead costs, are costs that remain constant even if the quantity of output varies in the short run, such as rent and insurance. Variable costs are costs that vary with the quantity produced, such as materials and labor. Average cost is calculated as the total cost divided by the quantity produced and includes both fixed and variable costs.

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    of 2

    Topic: CH-I9 Date:ļ 8.

    22

    Toledcoss(TC)=Flked eostt Varietke coste cy


    Exd sosts-Theeasts that omain me epte e Cetal
    eosts
    level o atput in short nun is caled Fik cosfs
    Eanple Rentsaay ef permanet worhe 3nsure
    premiAm

    VaribleCsts -The cst hetwatie nthdheenelo


    Qtat is calledwarlabkecootá,
    ErnelerCost of w materls direct beu
    Aserogecosts (Ac)=
    Ac AFc+AV
    Averacgefed
    Avesae cost Total Fired Cest TEC
    AFC

    AEC
    FC
    Fig-l(AF)

    Ok TEC

    Created with Scanner Pro


    Topic: CH-I9 Date:ļ 8.22

    Toledcoss(TC)=Flked eostt Varietke coste cy


    Exd sosts-Theeasts that omain me epte e Cetal
    eosts
    level o atput in short nun is caled Fik cosfs
    Eanple Rentsaay ef permanet worhe 3nsure
    premiAm

    VaribleCsts -The cst hetwatie nthdheenelo


    Qtat is calledwarlabkecootá,
    ErnelerCost of w materls direct beu
    Aserogecosts (Ac)=
    Ac AFc+AV
    Averacgefed
    Avesae cost Total Fired Cest TEC
    AFC

    AEC
    FC
    Fig-l(AF)

    Ok TEC

    Created with Scanner Pro

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