Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 29

Identify what variable costs are likely to be for a company that provides personal trainers. The personal trainers are paid a small salary plus a commission for each lesson. Also, what are the company’s fixed costs?

Step 1 of 3

Cost:

Cost refers to the expenditure incurred to manufacture product or provide a service. Since a number of cost are incurred during production process these costs are required to be bifurcated based on their usage, frequency etc.

Cost are divided into fixed cost and variable cost