Fixed Costs List & Flashcards

Fixed Costs List & Flashcards
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Find the fixed cost of a company that has a total cost of $10,000, a variable cost of $100, and produced 30 items.
10,000 - (100 x 30) = 10,000 - 3,000 = 7,000. Fixed cost = $7,000.
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Total Cost Formula
The formula that can be used to determine different costs, including fixed cost. It is written: fixed cost + variable cost x quantity = total cost, or FC + VC(Q) = TC.
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Variable Cost: Examples
These costs can include the price a company pays for raw materials or the amount of labor they need to complete a certain number of products.
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Variable Cost
Costs that rise or fall depending on the number of products a business creates.
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Assets
These are things, like a business's equipment or building, that an organization has purchased.
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Fixed Cost: Examples
Assets are examples of this type of cost. Costs related to research may also be unchanging.
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Fixed Cost
Costs that remain the same no matter how many items a business produces.
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15 cards in set

Flashcard Content Overview

This set of flashcards can help you review fixed costs and the total cost formula. You'll be able to consider variable costs as well. These cards also provide you with hands-on practice solving math problems that involve fixed costs..

Front
Back
Fixed Cost
Costs that remain the same no matter how many items a business produces.
Fixed Cost: Examples
Assets are examples of this type of cost. Costs related to research may also be unchanging.
Assets
These are things, like a business's equipment or building, that an organization has purchased.
Variable Cost
Costs that rise or fall depending on the number of products a business creates.
Variable Cost: Examples
These costs can include the price a company pays for raw materials or the amount of labor they need to complete a certain number of products.
Total Cost Formula
The formula that can be used to determine different costs, including fixed cost. It is written: fixed cost + variable cost x quantity = total cost, or FC + VC(Q) = TC.
Find the fixed cost of a company that has a total cost of $10,000, a variable cost of $100, and produced 30 items.
10,000 - (100 x 30) = 10,000 - 3,000 = 7,000. Fixed cost = $7,000.
Your company has a total cost of $30,000 and produces 100 items with a variable cost of $100. What is your fixed cost?
30,000 - (100 x 100) = 30,000 - 10,000 = 20,000. Fixed cost = $20,000.
Total Cost
The complete amount of money a company has to spend to create products; this includes both fixed and variable costs.
Quantity
When considering the total cost formula, this is the amount of products a company produces.
A company produces 1,000 items with a variable cost of $5. The company's total cost is $7,000. What is the company's fixed cost?
7,000 - (5 x 1,000) = 7,000 - 5,000 = 2,000. Fixed cost = $2,000.
You work for a company with a total cost of $20,000. It produces 500 items with a variable cost of $37. What is your company's fixed cost?
20,000 - (37 x 500) = 20,000 - 18,500 = 1,500. Fixed cost = $1,500.
There is a company that produces 500 items with a variable cost of $42. Their total cost is $23,492. What is their fixed cost?
23,492 - (42 x 500) = 23,492 - 21,000 = 2,392. Fixed cost = $2,392.
Find the fixed cost of a company that has a total cost of $1,000 and a variable cost of $39. The company produces 24 products.
1,000 - (39 x 24) = 1,000 - 936 = 64. Fixed cost = $64.
Your company produces 550 items with a variable cost of $40. Your total cost is $24,000. What is your fixed cost?
24,000 - (40 x 550) = 24,000 - 22,000 = 2,000. Fixed cost = $2,000.

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