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variable production cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › variable production cost

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • January 11, 2016 at 4:02 am #294065
    shreyas
    Participant
    • Topics: 16
    • Replies: 14
    • ☆

    sir will material and labour always be considered as variable production cost or it can be considered as fixed also ?

    January 11, 2016 at 9:34 am #294096
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    Direct material and labour is always variable by definition.

    Any material or labour used in the factory but not directly on production (indirect costs or overheads) can be either variable or fixed.

    January 11, 2016 at 4:34 pm #294134
    shreyas
    Participant
    • Topics: 16
    • Replies: 14
    • ☆

    so how do we judge it whether it is variable or not sir by seeing the question?

    January 12, 2016 at 8:00 am #294180
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    The question will make it clear.

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