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Subject Code : | AURAAA-002 | Country : | Australia |
Overview
Determine variable costs
Determine retail price of products and services
Determine variable costs
A business's variable costs are highly dependent on the nature of the particular business and are often unique from company to company. For example, a retail store will likely have variable costs related to inventory and more predictable overtime expenses during busy seasons.
Semi-variable costs are part variable and part fixed cost. Fixed costs are expenses that are the same from month to month, such as rent and insurance. Semi-variable costs fluctuate over time but have one or more components that do not change. For example, overtime expenses can differ between periods based on a business needs.
Examples of variable costs
Determine retail price of goods
Know your costs:
You have to know how much your product costs. You also have to understand how much you need to mark up the product and how many you need to sell to break even and turn a profit.
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