Amount to be paid for the investment policy is 6,34,920.63
Given that investment policy pay PV = $40000/year, % investment return = 6.3%, r= 6.3% =6.3/100 = 0.063
Though we need to calculate the value for one year so we need to use one year as no. of period To find the final value of a lump sum, we use, FV = PV/r, FV = 40000/0.063 = 6,34,920.634920. On rounding to two decimal place amount will be 6,34,920.63.
An investment policy outlines the guidelines for investing public funds and specifies the goals, risk tolerance, and restrictions on the investment portfolio, as well as how the investment programme will be managed and tracked.
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steven consumes only two goods, both of which are normal goods. he is maximizing his utility in consumption of both goods. now assume the price of one of the goods increases. how should steven's consumption change?
Steven should consume less of the good whose prices rose and more of the good whose prices did not change.
The ratio of marginal utilities to the ratio of their expenses can be translated right into a contrast of marginal application in keeping with the greenback for 2 objects. These two ratios should be equal inside the satisfactory-case state of affairs.
This indicates that the marginal application consistent with the dollar really worth of both commodities has to be equal.
The price a consumer is inclined to pay for a great relies upon its marginal software, which declines with every extra unit of consumption, in keeping with the regulation of diminishing marginal application. Consequently, the price decreases for a regular exact whilst consumption increases.
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an economy produces consumer goods and capital goods. initially, 600 units of consumer goods can be produced if no capital goods are produced. likewise, 600 units of capital goods can be produced if no consumer goods are produced.
The curve for the new production possibilities curve is attached in the image below
This is further explained below.
Showing the Production Possibilities:The production possibilities curve, also known as the production possibilities frontier, is a curve that illustrates all of the possible combinations of two-good bundles that an economy is able to produce given the resources that are currently available and the level of technology that has been achieved.
In conclusion, the New curve depicting the potential for production
The new production possibilities curve depicts an expansion in the productive capacity of the economy, which may be seen as an outward shift in the trajectory of the curve. This expansion in capacity can produce more capital and consumer items.
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CQ
An economy produces consumer goods and capital goods. Initially, 600 units of consumer goods can be produced if no capital goods are produced. Likewise, 600 units of capital goods can be produced if no consumer goods are produced.
B. Assume that economic growth increases the economy's production possibilities for both types of goods. Draw a new production possibilities curve.
randall company manufactures chocolate bars. the following were among randall's manufacturing costs during the current year: wages: machine operators $ 230,000 selling and administrative personnel $ 68,000 materials used: lubricant for oiling machinery $ 18,000 cocoa, sugar, and other raw materials $ 180,000 packaging materials $ 120,000 randall's direct labor costs amounted to:
........................................
an american brewery sells dollars to obtain euros. it then uses the euros to buy brewing equipment from a german company. these transactions a. increase u.s. net capital outflow because the u.s. buys capital goods. b. decrease u.s. net capital outflow because the u.s. buys capital goods. c. increase u.s. net capital outflow because germans obtain u.s. assets. d. decrease u.s. net capital outflow because germans obtain u.s. assets.
An American brewery sells dollars to obtain euros. it then uses the euros to buy brewing equipment from a German company. these transactions decrease U.S. net capital outflow because Germans obtain U.S. assets.
Assets are moved out of a country in a capital outflow. Since it frequently results from political or economic instability, capital outflow is regarded as negative. The flight of assets occurs when domestic and foreign investors sell off their interests in a given nation due to perceived economic weakness and the conviction that better chances are available abroad.
Excessive capital outflows reveal political or economic issues in a country that go beyond the flight of the assets itself. Some countries impose limitations on capital flight, but the effects of tightening those restrictions are frequently a sign of instability that can exacerbate the situation of the host economy.
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a country finds itself in the following situation: the government budget surplus is 2% of its gdp; private savings is 30% of gdp; and physical investment is 33% of gdp. based on the national saving and investment identity, what is this country's current account balance?
This nation's current account balance is a trade deficit of 1% of GDP. If a nation finds itself in the circumstances described below: the government budget surplus is 2% of the nation's GDP.
National saving and investment Identity: S + (M - X) = I + (G - T)
GDP = Y(say)
S = 30% = 0.3 Y
( G -T ) = - 2% = - 0.02 Y ( deficeit)
I = 125 Y = 0.33Y
thus S + (M - X) = I + (G - T)
0.3Y + (M - X) = 0.33Y - 0.02Y
=> (M - X) = 0.33Y - 0.02Y - 0.3Y = - 0.01Y = -1%Y
trade deficit of 1% of GDP
A country's gross domestic product (GDP) is the sum of the market values of all the finished products and services produced within its budget borders during a certain time period. It serves as a thorough assessment of a particular country's economic health as a wide indicator of entire domestic production.
While GDP is frequently estimated on an annual basis, it is also occasionally calculated on a quarterly basis. In the United States, for instance, the government produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Since each set of data in budget this report is presented in actual terms, price changes are taken into account and the data is therefore net of inflation.
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the management staff at andy's service center believes the company has a social responsibility to its community. they believe that the company can have the greatest impact in this area through cash contributions to local nonprofit organizations. this is an example of
The management staff at Andy's service center believes the company has a social responsibility to its community. they believe that the company can have the greatest impact in this area through cash contributions to local nonprofit organizations. this is an example of corporate philanthropy.
Fortunately, though, charitable contributions – even (and especially! ) the ones which might be made in coins to qualifying 50% Limit Organizations and are eligible for the 100%-of-AGI limit – do not ought to be handled as Qualified Contributions. A charitable donation is a present of coins or belongings made to a nonprofit corporation to assist it accomplish its goals, for which the donor gets not anything of fee in return. In the U.S., donations may be deducted from the federal tax returns of people and corporations making them.
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the process used to identify the financial data that change under alternative courses of action is called: group of answer choices management decision-making. target costing. incremental analysis. variance analysis.
The process used to identify the financial data that change under alternative courses of action is called Management decision-making.
Making a management decision involves selecting a course of action after weighing several options in order to achieve an organization's objectives. Problem-solving, budgeting, mentoring, planning, organizing, staffing, and controlling are all aspects of management. In order to guide a company to long-term success, management decision-making functions as a constant, dynamic check and balance system.
Decisions are the foundation of the management process overall. Making decisions is necessary for dealing with issues as well as for maximizing the benefits of possibilities that are there. Making the right choices reduces the complexity, unpredictability, and diversity of the organizational environments. Because there are so many within and outside chains of inevitable consequences when making decisions, even the greatest and most right decision may become ineffectual if these factors are overlooked.
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the assumption that a company makes about its inventory cost flow can affect cost of goods sold on its and inventory on its . multiple choice question. income statement; balance sheet balance sheet; income statement income statement; income statement balance sheet; balance sheet
A company's cost of goods sold and inventory on its balance sheet might be impacted by the assumptions it makes about the flow of its income statement.
A company's financial success over a particular accounting period is reported using one of the three key financial statements, the income statement. The cash flow statement and the balance sheet are the other two important statements.
The income statement focuses on the company's earnings for a specific time period, including profits and losses. An income statement, balance sheet sometimes referred to as a profit and loss (P&L) statement or a summary of sales and expenses, offers crucial information about a balance sheet company's operations, the effectiveness of its leadership, underperforming industries, and performance in comparison to peers in the same sector.
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The complete question is
The assumption that a company makes about its inventory cost flow can affect cost of goods sold on its __________ and inventory on its __________.
If an employer decides to pay certain workers less than the federal minimum wage, because the workers were lazy and shirked their duties, the employer would be in violation of.
If an employer decides to pay certain workers less than the federal minimum wage, because the workers were lazy and shirked their duties, the employer would be in violation of the minimum wage act.
What is minimum wage?This is simply the lowest wage that is paid for a social contract that exists between a worker and the person that has hired him or her to do jobs for them.
It is the lowest amount that the employers of labor are allowed to pay their workers. This is backed by the law of the nation where it is upheld.
In a case where the employer decides to pay the worker less than the minimum wage, the worker has every right to carry out legal actions on him by suing the employer.
This is because the employer has violated the government law based on how the workers are to be paid for the jobs that they perform.
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determining that the amount of cash agrees with the accounting records is (a) posting. (b) journalizing. (c) proving cash. (d) none of these.
Determining that the amount of cash agrees with the accounting records is Proving cash.
So, the correct option is C.
It is referred to as "proving cash" when it is established that the amount of cash matches the balance of the cash account in the accounting records. Compare the checkbook balance of cash with the balance in the cash account in order to demonstrate the existence of cash. Cash is demonstrated if the two balances are equal.
A bank reconciliation that includes both the prior-period and current-period balances as well as a comparison of the period's book receipts and disbursements to the bank statements as proof of cash. Proof of cash may reveal a variety of different reconciliation problems that call for adjusting the accounting records of a business, such as the following: Unrecorded bank fees.
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when planning a program to reduce the number of never events in an organization, the program planner should focus on the leading cause of never events, which is related to a problem with:
The major cause of sentinel events, which is a communication issue, should be the emphasis of any programme designed to lower the number of sentinel events in an organisation.
A patient safety incident that causes death, serious temporary injury, or permanent harm is known as a sentinel event. Patients and participating healthcare professionals experience crippling effects from sentinel events. The Joint Commission collaborates extensively with its partners to handle sentinel events and stop these kinds of occurrences from ever happening.
Any unexpected incident in a healthcare setting that causes a patient's death or substantial physical or psychological harm and is unrelated to the patient's illness' natural progression is referred to as a sentinel event.
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the commercial furniture manufacturer, office designs, utilizes a structure that includes functional divisions, such as accounting and production, and a divisional chain of command, such as the residential facilities and office divisions. for example, neveah, a salesperson, reports to the sales manager and the office products manager. business designs has a
Given the characteristics that has been associated with this business that we have here, this is based on the way that things are done and the chain of command, we would say that the business design has a customer divisional structure.
What is a customer divisional structure?This is the term that is used to refer to the organizational techniques that are used by various companies. This is used to refer to the technique that would have to do with the strategy that organizations would have were they wouldn't have separate structures in a particular company.
The different organizational structures that are in the company is the one that would have to handle all of the aspects that they are assigned or that has to do with the segment of the business that they are in control of.
Hence the answer to the question from what we have ready about this business would be the customer divisional structure that would take care of the goals of the department.
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Tara doesn’t get paid at the end of each month but most of her bills are due during the third and fourth weeks of the month. What term best describes her problem?
The term which best describes her problem is the cash flow problem as she doesn’t get paid at the end of each month but most of her bills are due during the third and fourth weeks of the month.
What is cash flow?Cash flow is the rise or falls in financial resources for a certain individual or business at particular times. The term "cash flow" describes the entrance or outflow of funds inside the same company at various points in time.
Because she is not paid before the end of each month, Tara in the scenario above does not have enough cash flow when her payments are due.
Thus, the term is cash flow.
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what is the type of change called when leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work?
In deficit-based change, leaders make the assumption that staff members will adapt if motivated to strive for higher levels of excellence in their work.
What is leader?
The ability of a person, group, or company to "lead," impact, or guide both these people, groups, or entire organisations is referred to as leadership, both as research field and as a practical skill. Leadership is frequently seen as a contentious term. Expert literature debates various points of view on the subject, sometimes contrasting Eastern as well as Western approaches to leadership as well as (within the West) North American vs European approaches. Leadership is described as "a method of social influence in which one person can enlist the aid as well as support of others for the achievement of a common and ethical task" in academic settings in the United States.
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on january 1, year 4, harrow co., as lessee, signed a 5-year noncancelable equipment lease with annual payments of $100,000 beginning december 31, year 4. harrow treated this transaction as a finance lease. the five lease payments have a present value of $379,000 at january 1, year 4, based on interest of 10%. what amount should harrow report as interest expense for the year ended december 31, year 4? $0 $37,900 $24,200 $27,900
The amount of $37,900 should harrow report as interest expense for the year ended December 31, year 4
Given that
The beginning lease liability at Year 1 = $379,000
Now the balance remains constant the entire year because the first lease payment is made one year later.
So the interest expense for Year 1 is
= 379000 × 10%
= $37,900
An entity's cost for borrowing money is known as an interest expense. On the income statement, interest expense is listed as a non-operating item. It reflects interest that must be paid on all borrowings, including bonds, loans, convertible debt, and credit lines. It is essentially determined by multiplying the debt's outstanding principle amount by the interest rate. Instead of the amount of interest paid during that time, interest expense on the income statement shows interest accrued throughout the period covered by the financial statements. Despite the fact that interest costs are tax deductible for businesses, they may not be in the case of a person, depending on their jurisdiction and the loan's intended use.Learn more about Interest expense, here
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What advice or feedback would you offer your colleague to improve their effectiveness?.
You've been doing a great job lately. You're so talented at staying flexible on any project, which helps everyone on the team. You have grown so much in your role since starting here. Thank you for your hard work, and let me know if there is anything I can do to make working here better.
Flexibility/limberness refers back to the anatomical range of movement in a joint or collection of joints, and the length in muscular tissues that move the joints to set off a bending motion or motion. Flexibility varies between people, specifically in phrases of variations in muscle duration of multi-joint muscle groups. Flexibility in a few joints may be improved to a positive diploma by means of exercising, with stretching a common workout factor to keep or improve flexibility.
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investments represent a(n) multiple choice question. a fully depreciated asset. long-term commitment of funds. temporary expenditure. short-term commitment of funds.
Investments represent a long-term commitment of funds. Thus, the correct answer option is (b) long-term commitment of funds.
Investments are referred to any sort of assets held by a company to generate future income. These assets can be in form of interests, dividends, rents, bonds, stocks, and real state property. The purpose of investment is to obtain an additional source to produce income and generate profits over a certain period of time.
While the other options are incorrect because:
A fully depreciated asset is an asset worth as same as its salvage value.Temporary expenditure refers to the expenses that are closed when an accounting period is closed.A short-term commitment of funds is an investment that can quickly be converted to cash.You can learn more about long-term investments at
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the hiring rate for management trainees at the rpb corporation for white applicants is 50 percent, while the hiring rate for hispanics is 20 percent and 15 percent for native americans. this is an example of disparate impact based on the blank rule. multiple choice mixed-motive business necessity standard deviation prima facie four-fifths
As the hiring rate for management trainees for the white applicants is 50 percent while the hiring rate for hispanics is 20 percent and 15 percent for native americans, this is an example of disparate impact based on business necessity.
What are business necessity?This refers to a legal concept used to justify some employer’s employment criteria that disproportionately affect a group of individuals. The justification often resides in a possibility that such company has its legitimate reasons to operate under such restrictive employment practices.
Some of the examples of a Business Necessity in hiring practices today includes:
Educational requirements. By mentioning a minimum requirement for completed education. For example, doctor’s positions require applicants to complete an advanced medical school degreeExperiential requirements. Requiring the job applicants to have a certain number of years of experience in a similar field. Its ensures that applicants are properly prepared for the tasks that will be assigned to them.Travel requirements. Requiring the employees to travel long distances frequently throughout the year etc.Read more about business necessity
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pepsico, inc., the parent company of frito-lay snack foods and pepsi beverages, had the following current assets and current liabilities at the end of two recent years:
The current ratio shows the current assets, divided by its current liabilities.
In quick ratio cash equivalents or only highly liquid cash is taken into account explicitly as current assets
Divided by current liabilities, the current ratio represents current assets.
Only highly liquid assets or cash equivalents are taken into account as current assets in the quick ratio.
Current assets
For Year 1 = 9,096 + 2,913 + 6,437 + 2,720 + 1,865 = $ 23,031.00
For Year 2 = 6,134 + 2,592 + 6,651 + 3,143 + 2,143 = $ 20,663.00
Current Liabilities
Year 1 = 4,071 + 13,507 = $ 17,578.00 Year 2 = 5,076 + 13,016
= $ 18,092.00
Current ratio
Year 1 = $ 23,031.00/$ 17,578.00= 1.3 ( to 1 decimal place)
Year 2 = $ 20,663.00/$ 18,092.00
= 1.1
Quick ratio Year 1 = (23,031.00 - 2,720 - 1,865)/ 17,578.00
= 1.0 to 1 decimal place
Year 2 = (20,663.00 - 3,143 - 2,143)
= 0.8
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trend-rite clothiers, inc. sells t-shirts to brand name stores, inc., under an existing written con¬tract. when textile costs increase, brand agrees to a price increase demanded by trend, even though the price was fixed under their existing contract. if brand later wants to cancel the written amendment to the contract to increase the price, saying it lacked consideration, brand may
If there are the lacked considerations,, the brand can cancel the written amendment to increase the price. It can occur because in the written contract mentioned that brand agrees to a price increase demanded by trend, even though the price was fixed under their existing contract.
The cancellation of a contract can happen if a brand fails to perform the specific tenets of the contract, you may have cause to terminate that contract. In the legal world, the cancelation of contract also known as a “breach,” but to end the contract, you must show that it was a material breach.
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write a letter to the president of your bank suggesting ideas for increasing profits and enhancing customer service by improving segmentation and targeting strategies.
In a bank, profits realization and customer service enhanced by advertising the bank products to the relevant customers, focusing marketing strategies on segmented market to improve the sales of home loans, and segmenting the market based on the eligibility criteria.
An example of a letter to the president of a bank is given below:
Mr. XYX,
President, ABC Bank,
10-11/12, Z street,
Country C-12533
Dear President XYX,
Market segmentation is an easy way to approach the relevant customers. To advertise the bank products to the relevant customers, marketing strategies has to focus on segmented market. To improve the sales of Home loans, segment the market based on the eligibility criteria.
Loans are provided to the individuals who earns the disposal incomes and the age criteria to meet is above 18 years. As the history of all the existing customers would be with the bank, so initially the existing customers can be targeted to increase their product sales. Moreover, families are the most targeted segment.
Employees with secured jobs and medium-high level incomes can be approached. Enhancing the customer service in more approachable to the customers would not only satisfy the customers and also gets promoted by the customers to others.
Thanks,
PQR Marketing Manger.
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Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. The future value of the $350 after 4 years is.
The future value of the $350 after 4 years is $441.87. Using the formula FV= PV*(1+i)^n we can calculate this when the annual interest rate is 6 percent.
Using the formula FV= PV*(1+i/100)^n
PV=Present Value
FV= Future value
i= rate of interest
n= no. of years
So, future value is-
$350 * (1+ 6/100)^4
= $441.87
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suppose a company paid out $1.1 in dividends per share during the past quarter. the stock is currently trading at $43.6 per share. what is this company's dividend yield? answer in percent, rounded to one decimal place.
The dividend yield of the company will be 2.5%, given that dividend paid by company and current market price of the shares.
Given information:
Cash dividend paid = $1.1
Market price per share = $43.6
Dividend yield = cash dividend / Market price per share*100
= 1.1/ 43.6*100
= 2.5%
The amount of cash a company will pay stock holders for having owned a proportion of its stock divided by its present share value is recognized as the dividend yield, which is depicted as a percentage. The large percentage of fully developed companies pay dividends.
The dividend yields of companies in the consumer items and utility segments are commonly greater than the average. But it is not important that if a company have higher dividend yield then will attract higher investors.
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vikander is studying the use of employee evaluations in determining salary and promotion decisions. he believes that the evaluations are unlikely to play a significant role and are more likely to reflect favoritism and to be used to keep employees docile. the sociological perspective vikander is most likely using is
The sociological perspective vikander is most likely using is Conflict theory. Hence, option B is correct.
What is Conflict theory?Karl Marx first proposed the conflict theory, which holds that society is perpetually at battle with itself for limited resources. Conflict theory holds that dominance and power, as opposed to agreement and conformity, maintain social order.
The effects of global capitalism on inequality and power. Pay differences based on gender and race. The 2008 financial crisis, when the government bailed out large corporations and banks.
Thus, option B is correct.
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The options are missing-
a) functionalist theory
b)conflict theory
c)feminist theory
d)symbolic interaction theory
e)organizational change theory
alculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. selling price for one unit is $150. round calculations to the neare
The total revenue per distributor category such as JIT will be $787,500,000 and non-JIT will be $787,500,000.
Calculation of total revenue per distributer category:
JIT:
Sales unit= $5,250,000
Sales amount (unit * $150) = $787,500,000
Allocation of cost (50%-50%) = 2,625,000
Non-JIT:
Sales unit = 5,250,000
Sales amount (units* $150) = 787,500,000
Allocation of cost (50%- 50%) = 2,625,000
Total revenue: The total amount of funds a company earns from the sale of its products and services at a specified price is referred to as revenue. Any financial statements should start with the revenue that will eventually result in net earnings after expenses have been deducted. By multiplying the entire number of products and services sold by their prices, total revenue—the sum of all sales—is decided.
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When prospecting, salespeople must first identify potential customers and then
A. Construct a prospect list
B. qualify their leads.
C. telephone each lead.
D. call on all prospects.
A prospect list is a list of persons who might be interested in your product offering or who might gain anything from your business's goods or services.
Answer : A. Construct a prospect list
What constitutes a prospecting strategy's first step?On the surface: How to find potential consumers for your business through prospecting
Step 1 :Define your customer as the first step.
Step 2: Access online resources.
Step 3 :Gather prospect information in step three.
Step 4: Exploit additional avenues of opportunity.
Step 5: Make contact with your prospects in step five.
Step 6: Keep following up with your prospects and hone your list of them.
Identification of prospective clients, often known as prospects, is the first step in the sales process.
Prospecting is the initial stage of the sales process. You locate potential clients in this stage and assess whether they require your good or service and whether they can afford what you have to offer.
Qualifying is the process of determining whether a customer needs your good or service and can afford it.
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the practice of moving individuals to various types of jobs within the organization at the same level or next-immediate-higher level for periods of time from an hour or two to as long as a year is known as .
The practice of moving individuals to various types of jobs within the organization at the same level or next-immediate-higher level for periods of time from an hour or two to as long as a year is known as job rotation.
An association is a group of people who work together, like a neighborhood association, a charity, a union, or a pot. You can use the word association to relate to a group or business, or to the act of forming or establishing something.
Organizational and organizational are both English terms. In the United States, there's a preference for" organizational" over" organizational). In the United Kingdom, there's a 71 to 29 preference for" organizational" over" organizational". organizational adjective( before noun)( RELATING TO PLANNING) relating to the planning of exertion or event She's looking for a particular adjunct with good organizational chops. A lot of what he does is organizational; he handles all the meetings.
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a reduction in the demand for labor caused by changes in technology, taxes, and competition is likely to result in: a. cyclical unemployment. b. frictional unemployment. c. structural unemployment. d. seasonal unemployment.
A reduction in the demand for labor caused by changes in technology, taxes, and competition is likely to result in structural unemployment.
What is structural unemployment. ?
Unemployment is when labor who are able to get jobs and are willing to work do not have jobs. The types of unemployment includes cyclical unemployment, frictional unemployment, structural unemployment and seasonal unemployment.
Structural unemployment is an unemployment that occurs as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent. Frictional unemployment is the brief period a person is employed from when he leaves his current job and the time he gets another job. Voluntary unemployment is when a person does not have a job and pursues other things. e.g., the person goes back to school. Cyclical unemployment occurs as a result of fluctuations in the economy.
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an acura automobile ad is headlined by a quote from henry david thoreau, "go in the direction of your dreams." this ad is most likely to appeal to consumer’s needs in the maslow hierarchy of needs.
The headlined quote is most likely to appeal to consumer's self-actualization needs in the Maslow hierarchy of needs.
Maslow's hierarchy of needs can be described as a theory of motivation which states that five categories of human needs dictate an individual's behavior. Maslow's hierarchy of needs are including physiological needs, safety needs, love and belonging needs, esteem needs, and self-actualization needs. Maslow's hierarchy of needs is an idea that written in a paper "A Theory of Human Motivation" in the journal Psychological Review proposed by American psychologist Abraham Maslow in his 1943
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orio produced 5300 biscuits in the previous month and incurred a fixed moh of $10 per unit. next month, he plans to produce and sell 5900 biscuits at a price of $32. he estimates the variable cost to be 13% of the price. how much profit will he earn next month?
Having a fixed cost of $10 per unit, orio manufactured 5300 biscuits in the previous month. He intends to produce 5900 biscuits and sell them for $32 during the course of the following month. He calculates that 13% of the pricing is made up of variable costs. He will benefit by $108,225 the following month.
The terms manufacture, assemble, and fabricate refer to industrial processes. The term "manufactured products" refers to goods and building components made entirely or partially of non-ferrous metals like aluminum, plastics and polymer-based goods like polyvinyl chloride pipe, aggregates like concrete, glass, including optical fiber, and lumber. However, we refer to a material as being produced when it has undergone processing, or when humans have made changes to it. An continuing expense known as a variable cost changes in value depending on variables like output and sales revenue. Costs for labor, raw materials, and distribution are examples of variable expenses. Variable costs are expenses that alter as the volume of a good or service a company produces fluctuates. Marginal costs over all units produced make up variable costs.
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