Question

Acne company has an agreement with a major credit card company that calls for cash to be:____

Answer 1

Acne company has an agreement with a major credit card company that calls for cash to be a variable cost.

Variable costs are fees that change as the extent of modifications. Examples of variable charges are raw substances, piece-rate hard work, production substances, commissions, shipping fees, packaging materials, and credit card costs. In a few accounting statements, the Variable fees of manufacturing are referred to as the “cost of goods offered.”

A variable cost is a price that adjustments in share to manufacturing output or income. While manufacturing or income boom, variable expenses increase; when production or income lower, variable prices lower.

Variable value system. To calculate variable costs, multiply what it costs to make one unit of your product via the full range of merchandise you've got created. This method looks like this: overall Variable charges = value in keeping with Unit x overall variety of units.

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