Please answer these

Cost Accounts 822 views 1 replies

Hi Friends Please answer these

For company making frozen pizzas:

Q1. How refrigerant used in refrigerator equipment is variable cost?

Q2. What are Janitorial costs and why are they fixed cost?

Q3. How property tax is fixed cost?

Q4. How electricity cost is variable cost?

Q5. How Straight line depreciation is fixed cost?

Q6. How  salary of plant manager is fixed cost?

 

Please explain me these concept?

Replies (1)

1. Since the company makes frozen pizza, the amount of refrigerant which is use in freezers/refrigerators would vary with the volume. The more production, more the requirement. Hence Variable.

2. Janitorial Costs are costs for cleaning and maintenance of a building/office. The amount paid towards these would be fixed irrespective of level of activity. Hence Fixed. 

3- Property Tax - The tax has to be paid irrespective of the level of activity and the amount of tax is fixed in nature. The tax wont change with change in production. Hence fixed.

4. Electricity - The consumption of electricity depends on the units produced and will vary with level of production - Hence Variable.

Similar logic can be applied to 5&6 as well. 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details