WHat is the benefit of converting fixed to variable costs? Please include references. Best answer ten points.
2006-06-06 09:14:50 · 11 answers · asked by 2fine4u 6 in Education & Reference ➔ Homework Help
The first site below gives a good primer on fixed, variable and marginal costs. It's interactive, so you can try out answers and see if they're correct.
Wikipedia has definitions of fixed and variable costs.
The reason you would rather have a variable cost than a fixed cost is that you must pay a fixed cost even when you have no output.
Say you take a 5-year lease on a building to make widgets (economists are always making widgets) and then all your workers go on strike/catch the flu/are deported/move to France. You still have to pay the rent, which is a fixed cost. You can stop paying the workers, who are a variable cost.
Changing a fixed cost into a variable cost provides more flexibility.
2006-06-06 09:30:39 · answer #1 · answered by Steve A 7 · 2⤊ 0⤋
The only benefit I can think of is that maybe the variable rate is lower. If you intend to keep your house for a long period of time, I would be very careful with that kind of mortgage. If, however, you intend to "flip" it, a variable mortgage that is low may be just what you are looking for.
2006-06-06 09:20:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I agree with kutekymme and 3 nails you will not learn from others telling you the answers you need to do your homework on your own, also you have the Internet just go to ask.com and ask that question again and you will get the answer.
2006-06-06 09:22:10 · answer #3 · answered by sarahgirl105 2 · 0⤊ 0⤋
I'm sorry I don't know the answer. I just wanted to say sorry 'bout all the jacka**es out there that gave you lip just for asking.
Good luck =)
2006-06-06 09:40:45 · answer #4 · answered by Crystal 1 · 0⤊ 0⤋
You won't learn anything if someone else just gives you the answer.
2006-06-06 09:17:54 · answer #5 · answered by kathy059 6 · 0⤊ 0⤋
i dont want 10 points . if u want ,
mail me at the following add.
iwant10points@nopoints.com
2006-06-06 09:18:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
This is called 'homework help' - not 'get other people to do my homework for me.'
read your text book.
2006-06-06 09:16:27 · answer #7 · answered by Kutekymmee 6 · 0⤊ 0⤋
you've got the whole internet and yet you ask other people to do that for you
2006-06-06 09:18:46 · answer #8 · answered by ? 6 · 0⤊ 0⤋
i don't want points. What else are you willing to give?
2006-06-06 09:18:14 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Me agrees with above....
2006-06-06 09:17:04 · answer #10 · answered by 3 nails 3 · 0⤊ 0⤋