Page 34 - BA2 Integrated Workbook - Student 2017
P. 34

Chapter 2




               3.2    Variable cost

                             The CIMA Terminology defines a variable cost as a ‘cost that varies
                             with a measure of activity’.





               Examples of variable costs:

                    Direct material

                    Direct labour

                    Variable overheads


               Graphs of variable costs


              Total
             cost $                                         Unit
                                                          cost $















                                                Activity                                   Activity

                                                  level                                     level






















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