Page 36 - BA2 Integrated Workbook STUDENT 2018
P. 36

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                                         Unit

             cost $                                       cost $
               ion                                          ion














                                                Activity                                   Activity

                                                  level                                      level
                                                   ion                                       ion




















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