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Variable costs:1. theory of properties at least partially help in solving the indirect costs of distribution and uploaded to the units produced through sufficiency to download only the variable part of the problem, which is linked to the size of the activity. Fixed costs are treated as period costs charged to the expense of profits, which leads to lack of contrast results from one period to another0.2. Provide project management data on the profit and the size and cost relationship used by the administration in profit planning, and help management in planning and setting pricing policies in the short-term planning and budgeting, and take appropriate administrative decisions0.3. Provide oversight on the variable costs in order to reduce them to the lowest possible level, while the fixed costs of the task put your trust oversight of senior management levels. Criticism of this theory:1. It is difficult to separate the variable costs and fixed costs, there are costs are considered constant at certain limits of certain production then take the change change the volume of production and, there are variable costs, but do not change the same rate of change of the volume of production (semi-fixed costs semi-variable costs)0.2 . Do not cross the variable cost of the unity of production and sales for the real cost of that unit because according to this theory, bearing units of production and sales, including its own variable costs of all these units do not carry fixed costs.3. This theory assumes the stability of prices of production and sale prices of the final products of factors that can not be achieved only in the short term.
AGREE WITH MR GEORGI ANSWER
Agreed with the answer, Mr. George
I endorsed Mr. Georgei's answer.
agrred with mr geaorge assai
