Question 2: What is fixed cost? What is variable cost? What is the marginal profit? For production enterprises, variable cost and fixed cost are the contents of total cost. Namely: variable cost+fixed cost = total cost. The accounting standards clearly stipulate the subjects that can enter the cost. Suitable for petroleum exploration, various chemical enterprises, large-scale manufacturing enterprises, steel enterprises ... In short, as long as it is a continuous production enterprise equipped with fixed equipment and personnel and using roughly fixed raw material power and auxiliary materials, its total cost can be summarized as: 1 production cost 1. 1 outsourcing (primary and secondary). Material cost 1.2 outsourcing fuel power cost 1.3 direct salary welfare cost 1.4 manufacturing cost/.4.65438 depreciation cost 1.4.2 repair cost 1.4.3 other manufacturing cost 2 management cost 2.66 Financial expenses (interest) 3. 1 long-term loan interest 3.2 working capital loan interest 3.3 short-term loan interest 4 operating (sales) expenses In fact, before explaining what is variable cost and what is fixed cost, we must first understand the starting point of the problem. Because the word "cost" has at least two meanings for different people. You understand the "cost" as the total cost, and you understand the "cost" as the "unit cost" after converting it into a unit product. Take the above total cost as an example: the total amount of "purchased (raw and auxiliary) materials fee+purchased fuel power fee" in the production cost will change synchronously with the production load (within an appropriate range), but the cost converted into unit product is fixed; From the point of view of operation and management, generally speaking, for an enterprise that has been completed and put into production, the total expenses that must be incurred every year are basically unchanged except the expenses of outsourcing (raw and auxiliary materials)+outsourcing fuel and power. However, the conversion of these costs into unit product costs varies greatly. Therefore, if you want the total cost (expense) to be fixed, then the cost (expense) other than "outsourcing (raw and auxiliary) material expense+outsourcing fuel power expense" should be called "fixed cost", while "outsourcing (raw and auxiliary) material expense+outsourcing fuel power expense" should belong to "variable cost"-(work in process). On the other hand, if you want to follow. Fixed cost (also called fixed cost) is relative to variable cost, which refers to the cost that the total cost can remain unchanged in a certain period and within a certain business scope, regardless of the increase or decrease of business volume.
The characteristic of fixed cost is that its total amount remains unchanged within a certain time range and business scope, but relative to the unit business volume, the fixed cost allocated by the unit business volume changes inversely with the increase or decrease of business volume.
The total amount of fixed costs is fixed only in a certain period and within a certain business scope, that is to say, the fixity of fixed costs is conditional. A certain range mentioned here is called the relevant range. If the business volume changes beyond this range, the fixed cost will change. Variable cost is the opposite of fixed cost. Variable costs refer to those costs whose total amount varies linearly with the change of business volume within the relevant range. Direct labor and direct materials are typical variable costs. In a certain period of time, their total amount changes directly with the increase or decrease of business volume, but the consumption per unit product remains unchanged.
Fixed cost classification
Fixed costs can usually be divided into committed fixed costs and discretionary fixed costs.
Committed fixed cost: the cost necessary to maintain the business ability of an enterprise to provide goods and services, such as depreciation of plant and machinery, property tax, house rent, salary of management personnel, etc. Because this kind of cost is linked with maintaining the business ability of the enterprise, it is also called the ability cost. Once the amount of such expenses is determined, it cannot be easily changed, so it is quite binding.
Discretionary fixed costs: fixed costs formed by the planned budget determined by the enterprise management authorities according to the operating and financial conditions before the start of the fiscal year, such as new product development fees, advertising fees, staff training fees, etc. Because the budget of such expenses is only valid during the budget period, enterprise leaders can determine the budgets of different budget periods according to the changes of specific conditions, so it is also called self-determined fixed cost. This kind of cost >>
Question 3: What do the holding cost and short-term cost of current assets mean?
Bear the larger cost of holding current assets, but the shortage cost is smaller.
Holding cost: refers to the increased cost with the increase of current assets investment. Holding cost is mainly the opportunity cost related to current assets.
-Changes in the same direction as current assets investment
Shortage cost refers to the cost that increases with the decrease of investment level of current assets.
For example, insufficient investment leads to cash shortage, so it is necessary to sell securities and bear transaction costs; When selling securities is not enough to solve the problem, you need to borrow urgently and bear higher interest.
-Changes in the direction opposite to the investment in liquid assets
Question 4: Does fixed cost mean fixed cost? Hello, classmate, I'm glad to answer your question!
fixed cost
Cost that does not change with workload in the short term. (Also called "no cost" or "no cost". )
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Question 5: Try to deduce the long-term total cost curve from the short-term cost curve and explain the meaning of the long-term total cost curve. The short-term total cost curve can be divided into: short-term total cost curve (STC), short-term average cost curve (SAC) and short-term marginal cost curve (SMC). STC is the total cost of producing a certain number of products under a certain production scale; So SAC is STC divided by the number of products; SMC is the slope of STC. All have their own short-term cost curves under a certain production scale, that is, each production scale, so there are countless short-term cost curves. Because the production scale remains unchanged in the short term, manufacturers can only tolerate the established production scale and decide the output according to the profit maximization condition that the marginal cost is equal to the market price. But in the long run, the production scale is variable, and manufacturers will definitely choose the production scale with the lowest cost for each production level. As mentioned above, there are countless short-term total cost curves, and manufacturers can find the optimal production scale at any output level. Graphically, taking the total cost as an example, connecting the most efficient points on each STC is the curve of LTC. LAC and LMC can be found through LTC (LAC is LTC divided by product quantity; LMC is the slope of LTC), or it can be deduced from SAC and SMC only by pushing LTC.
Question 6: Restrict fixed costs, answer D Answer analysis The main assessment point of this question is the commitment of fixed costs. Committed fixed cost refers to the fixed cost whose specific amount cannot be changed due to the short-term (operational) decision-making behavior of management. For example: insurance premium, rent, basic salary of depreciation management personnel, etc. Therefore, options A, B and C are all committed fixed costs. Option d is a discretionary fixed cost.
Question 7: What does the binding cost mean? Committed fixed cost, also known as committed fixed cost, refers to the part of fixed cost that is not affected by the short-term decision-making behavior of enterprise management. For example, depreciation expense of factory buildings, machinery and equipment, rent of houses and equipment, real estate tax, property insurance premium, lighting fee, salary of administrative personnel, etc. , are committed to fixed costs.
Fixed costs can be further divided into committed fixed costs and discretionary fixed costs according to whether their expenditures are affected by the short-term decision-making behavior of enterprise management.
Committed fixed cost reflects the cost of forming and maintaining the minimum production and operation capacity of an enterprise, and it is also the minimum cost that an enterprise must bear in operating its business, so it is also called operation capacity cost. Because once an enterprise's operating ability is formed, it should not be easily reduced in the short term, which may affect the realization of its long-term goals and reduce its profitability, such costs are highly binding.
Question 8: The meaning of cost leadership strategy. Cost-leading strategy refers to the strategy that enterprises can reduce the cost in the process of operation through effective ways, so that enterprises can win competitive advantage at a lower total cost. The competitive advantage of cost-dependent people is that the total cost is lower than the competitors. The cost-leading strategy should make an enterprise's operating cost the lowest, because any strategy should contain the content of cost control, which is the task of management, but not every strategy should pursue the lowest cost in the same industry. According to Porter's thought, the cost-leading strategy should be reflected in the low price relative to the opponent, but this does not mean that only short-term cost advantages or only cost reduction are obtained, but a concept of "controllable cost leadership". The key to the success of this strategy is to realize the sustainable cost advantage to competitors on the premise of satisfying the most important product features and services that customers think. In other words, enterprises implementing low-cost strategy must find the sustainable source of cost advantage and form obstacles to prevent competitors from imitating advantages. This low-cost advantage will last for a long time.