Please provide with the various fixed and variable expenses of automobile manufacturing firms
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Please provide with the various fixed and variable expenses of automobile manufacturing firms
You try and list them all down.
You try and classify them.
We shall make the necessary corrections for you if you are wrong.
Fixed
Property Tax
Interest expenses
Insurance
Rents (if any)
Plant Equipment Expenses
Salaries
Utility Costs
Variable
Raw Material Cost
Production Costs
Transportation
Power/Energy
Labour-Wages
Storage charges (E)
All correct, noting that utilities could be fixed, variable or mixed. For auto manufacturing I'd guess mixed.Quote:
Fixed
Property Tax
Interest expenses
Insurance
Rents (if any)
Plant Equipment Expenses
Salaries
Utility Costs
"Production costs" doesn't specify what it is. All direct material, direct labor and overhead are production costs. Overhead could be all sorts of stuff, including fixed. Leave it out.Quote:
Variable
Raw Material Cost
Production Costs
Transportation
Power/Energy
Labour-Wages
Storage charges (E)
Transportation? Are you meaning freight?
Power/Energy - that's utilities so ditto above comment.
Storage charges is in my opinion an incremental fixed cost. If you're trying to stay simple, I wouldn't go there.
You didn't specify that these had to be product costs. Can you think of some selling/admin that might be variable?
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