Describe a Variable Cost

question 126

Essay

Describe a variable cost.Describe a fixed cost.Explain why the distinction between variable and fixed costs is important in cost accounting.

---

Definitions:

Endowed Gift

A donation made to an institution with the stipulation that the principal is kept intact and only the investment income is used.

Current Financial Resources

Assets that are expected to be used or turned into cash within one year, providing insight into a company's short-term financial health.

Expenditures

Outflows of money or other valuables, typically categorized as either capital expenditures (CapEx) or operating expenses (OpEx).

Salaries And Wages

Compensation received by employees for services performed, typically paid on an hourly or annual basis.