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Bookmark or Share- Fixed Costs | Example & Definition - InvestingAnswersExamples of common variable costs include raw materials, packaging, delivery, and labor directly involved in a company's manufacturing process. Total Cost vs. Fixed Cost vs. Variable Cost Total cost is both the fixed cost and variable costs combined.
- Commodity | Meaning & Example - InvestingAnswersThere are three main categories of commodities -- agriculture, energy, and metals. Commodities that fall under the agriculture category include foodstuffs like sugar, grains, livestock, and raw materials such as cotton. Energy commodities include natural gas and crude oil, whereas metals include mined materials such as gold and silver.
- Economies of Scale Definition & Example - InvestingAnswersThe need for additional managerial expertise or personnel, higher raw materials costs, a reduction in competitive focus, and the need for additional facilities can actually increase a company's per-unit cost. When this happens, it is commonly referred to as diseconomies of scale.
- COGS - Cost of Goods Sold Definition - InvestingAnswersIf Company XYZ's raw materials prices never changed, it might be practical for Company XYZ to calculate total cost of goods sold by multiplying $17 by the number of eyeglasses sold in a period. However, raw materials prices frequently do change, and when Company XYZ sells a pair of eyeglasses, it must determine exactly which materials it was ...
- Raw Materials - Canada CommonsRaw Materials. A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished products, energy, or intermediate materials that are feedstock for future finished products.
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