all info needed for the total cost approach is rarely available d. managers prefer to see all costs and benefits associated with a decision c. critical info may be overlooked with the total cost approach b. Though an electric unit does not heat as fast, this should be an acceptable trade off since the hot water consumption was low enough to start. Isolating relevant costs is desirable because: (Select all that apply) a. With a variable cost that would likely be $12 to $14 per month, the natural gas fixed cost is eliminated since hot water is now provided by the electric service, whose fixed costs are already covered. In this case, it is likely beneficial to switch to an electric water heater when the natural gas unit reaches the end of its life. The fixed monthly cost is for delivery is $14 and the consumption by this house is low at approximately $8 per month average. The only device on the natural gas line is the hot water heater. However, the counter to this is that the price per unit consumed raises since the fixed cost becomes more of the dominant cost of the two.Ī useful application of this principle would be a household that has both an electricity service and natural gas service. The important concept here is that it is easier to cut variable costs than it is to cut fixed costs. The fixed cost must be overcome before any variable costs are encountered. This applies the same to a water, electricity, or natural gas bill. For any consumable, there is a fixed base account/delivery charge and a variable change based on the amount delivered. Many bills and purchases in our life have a combination of fixed and variable costs. A variable cost is a cost that changes based on a combination of variables.
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A fixed cost is one that remains the same independent of other variables. There are two types of costs, fixed and variable.
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Send us feedback.This is a mini lesson in economics. These example sentences are selected automatically from various online news sources to reflect current usage of the word 'variable.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. 2022 The one variable for Santa's reindeer is whether or not the males are castrated because those male reindeer have antler growing patterns similar to females. 2022 One important variable in the success of distribution will be the pace with which Americans order tests, said Mara Aspinall, a professor at Arizona State University and adviser to The Rockefeller Foundation on Covid diagnostics. and its European allies would then respond.Ĭathy Bussewitz, ajc, 24 Jan. 2022 The biggest unknown variable is whether Russia goes ahead and takes military action against Ukraine and how the U.S. Menzie Chinn, Milwaukee Journal Sentinel, 12 Feb. 2021 One big variable is the cost and availability of inputs - that is, the things that businesses need to produce their products and services. 2022 At a hearing this week, the bench's conservative supermajority signaled its intent to uphold the law, going against decades of precedent and likely introducing a volatile new variable in electoral politics.
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2022 Jackson has offered little about where negotiations stand, and his lack of traditional representation is a unique variable in a potentially franchise-altering decision. Rashika Jaipuriar, The Indianapolis Star, 4 Feb.
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2022 In late 2020, their pregnancy added a new variable to everything. 2022 Recent Examples on the Web: Noun No matter the industry, empathy can and will be the defining variable that creates trust.įortune, 22 Feb. Synonyms for variable include fluctuating, unstable, fickle, inconstant, shifting, unsteady, wavering, capricious, fluid and inconsistent. 2020 That engine is coupled with the continuously variable transmission - both of which are available on all models of the car.Ĭhristian De Looper, BGR, 20 Jan. 2022 For that matter, audio files on YouTube are of variable sonic quality. 2022 Ice cover is highly variable, with some years seeing widespread coverage and others little, but overall is decreasing at a rate of about 5% per decade. 2020 Unlike the Arctic, where scientists say climate change is accelerating its impacts, Antarctica's sea ice extent is highly variable. 2021 But how variable and unearthly could conditions on these rocky planets be? 2022 Because symptoms are variable and wide-ranging, this form of long Covid is difficult to characterize.ĭiane O'leary, STAT, 24 Apr. 2022 The symptoms of low testosterone are variable and sometimes subtle, so clinical experience and judgment are necessary.ĭr. This method allocates all variable-manufacturing costs to the product during the period. Recent Examples on the Web: Adjective Part of electric vehicles' magic in low- and variable-speed scenarios is their ability to recapture energy when decelerating by slowing the vehicle using the electric motor (or motors) rather than the traditional brakes.ĭave Vanderwerp, Car and Driver, 14 Feb. Definition: Variable costing, also called direct costing, is an accounting method used to allocate production costs to product being produced.