AAT3 Costs and Revenues

Pregunta	Respuesta
Image: 8758f9df-107f-417e-9501-da4e16c250f6 (image/jpg)	Variable Costs change with level of production
Image: 3d011671-ac54-439a-be68-934ab7c5febf (image/jpg)	Fixed costs are constant and do not change with production
Image: d6a8d946-b071-4501-964f-e36f5a9211b1.gif (image/gif)	Stepped fixed costs change with level of production but in a stepped manner
Image: 482c9e7d-5de3-42e8-9877-9fddf3b0be79.gif (image/gif)	Semi-variable costs have an fixed element and variable element, for example, you may pay for telephone rental but then costs vary with use
Direct Costs	Traceable directly to a cost unit made up of: Direct material Direct Labour Direct Overheads The total of these is called the prime cost per unit
Indirect costs	Indirect Costs are those that cannot be identified with any one finished unit. Indirect material – cleaning products Indirect Labour – the production line supervisor Indirect Overheads – rent, rates, electricity
Production Costs	Cost of Sales are also known as production costs. This category could include production labour, materials, supervisor salaries and factory rent
Non-production costs	Non-production costs includes distribution such as sales team commission and delivery costs. Administrative costs are also classified as non-production costs such as head office costs, IT support, HR support and accountants.

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	Creado por Liz Barraclough hace casi 12 años