Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 38

Total variable costs change in total with your level of production. Say you use plywood to make each office desk. Each desk requires $4 of plywood. The $4 cost per desk does not change with production.

If you produced 1,000 desks in March, your total variable plywood cost is 1,000 desks × $4, or $4,000. The 800 desks produced in April generate $3,200 in variable plywood costs. The total variable costs do change, but the $4 variable cost per unit stays the same.

Table 2-1 summarizes fixed and variable costs.

TABLE 2-1: Fixed and Variable Costs

Change with Level of Production?
Fixed Costs
Total fixed costs	No
Fixed cost per unit	Yes
Variable costs
Total variable costs	Yes
Variable cost per unit	No