成本用英语怎么说(UnderstandingtheTerminologyofCost)

2023-11-29T10:36:13

UnderstandingtheTerminologyofCost

Whendealingwithfinancesandbusiness,understandingtheterminologyofcostiscrucialinmakinginformeddecisions.Thisarticlewilltakeyouthroughthethreemaintypesofcosts:variable,fixed,andmixed.

VariableCosts

Variablecostsarecoststhatchangebasedonthelevelofoutput.Thesecostsincreaseasthelevelofproductionincreasesanddecreaseasitdecreases.Examplesofvariablecostsaredirectmaterials,directlabor,andcommissions.Sincethesecostsfluctuatewithproductionlevels,theyareoftenreferredtoasflexiblecosts.

FixedCosts

Fixedcostsarecoststhatremainconstantregardlessofthelevelofproduction.Examplesoffixedcostsarerent,salaries,andinsurancepremiums.Thesecostsdonotchangeevenifacompanyincreasesordecreasesitslevelofproduction.Fixedcostsaresometimesreferredtoasoverheadcostsbecausetheyarenecessarytooperatethebusiness,butdon'tvaryaccordingtooutput.

MixedCosts

Mixedcosts,asthenamesuggests,areacombinationofbothfixedandvariablecosts.Thesecostshaveafixedcomponentandavariablecomponent,makingthemdifficulttoseparate.Examplesofmixedcostsareutilitybillsandsupplies.Thefixedcomponentofamixedcostisthesameregardlessofthelevelofproduction,whilethevariablecomponentincreasesasproductionlevelsincrease.

Understandingthedifferenttypesofcostsisessentialinanalyzingbusinessoperationsandmakingsoundfinancialdecisions.Byidentifyingfixedcostsandvariablecosts,abusinesscanbetterunderstanditscoststructureandplanitsproductionlevelsaccordingly.