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Does variable cost exist in selling and distribution.? For example if it's in the case advertising made on the Bottle, then it such overhwad will be based on no of bottles made right?.... Video Details ------------- Cost and Management Accounting Activity Based Costing #2. Activity Based Costing (ABC) - Example
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It depends on case to cas basis Fixed costs Some selling and distribution expenses, like rent and base salaries, are fixed costs that remain the same regardless of sales or production volumes. Variable costs Other selling and distribution expenses, like distribution costs, are variable costs that change as sales volumes increase or decrease. Semi-variable costs Some selling expenses can be considered semi-variable costs because some components change as sales volumes change, while others remain stable