Costing - treatement of exp

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013
Dear Friends,

Can we consider the repair & Maintenance cost to Exclusive Factory Building as a variable cost.

PLease provide your valuable advice with some explanation.

KAMESH.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 June 2013 Variable cost means the cost will constant for each unit of production. suppose factory is producing 100 units the your repair & maintenance cost need to be incurred additionally for every unit of production, incase the repair & maintenance cost amount is fixed amount then cannot treat variable cost