The organization’s manufacturing process, machinery, research and development costs make up the fixed costs. On the other hand, administration, distribution, labor and raw material are the variable costs.
In this post
What are 3 variable costs?
Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.
What are the costs of NIKE?
NIKE annual operating expenses for 2021 were $37.601B, a 9.66% increase from 2020. NIKE annual operating expenses for 2020 were $34.288B, a 0.17% decline from 2019.
What are 4 common variable expenses?
Health, disability or life insurance premiums. Property taxes. Childcare expenses. Student loan or car loan payments.
What is NIKE’s biggest expense?
Nike’s greatest expense category is sales costs (mostly inventory and warehousing), which total more than $21 billion per year. What is this? Additionally, around $3 billion is allocated to marketing, including advertising and promotion, sponsorship, media, brand events, and retail brand presentation.
What is variable cost give example?
Examples of variable costs include a manufacturing company’s costs of raw materials and packaging—or a retail company’s credit card transaction fees or shipping expenses, which rise or fall with sales. A variable cost can be contrasted with a fixed cost.
What are variable costs?
Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.
How do you actually pronounce Nike?
Nike rhymes with “bike”, doesn’t it? Well, no, actually it rhymes with “spiky”. Nike chairman Philip Knight has confirmed the correct way to pronounce the brand’s name, after two men sent him a letter asking him to circle either “Ni-ke” or “Ni-key” and answer what they called “one of life’s big unanswered questions”.
What does Nike stand for?
the Greek goddess of victory
: the Greek goddess of victory.
Is rent a variable cost?
Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.
How do you find variable costs?
To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.
Is rent a variable expense?
Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
What does it cost Nike to make a pair of shoes?
People pay upwards of $100 for Nike sneakers without a second thought. As the consumer, it’s their right to pay as much or as little as they want for whatever they choose. But on average, it only costs the company about $30 to make those shoes.
How does Nike cut cost?
Plans have been announced by Nike to reduce the weight of the cardboard in its shoebox packaging by 10 per cent, which will generate cost savings through less material use.
Where does Nike make most of its money?
footwear
Most of Nike’s sales are generated by selling footwear to wholesale customers in North America.
Is salary a variable cost?
If you pay an employee a salary that isn’t dependent on the hours worked, that’s a fixed cost. Other types of compensation, such as piecework or commissions are variable. Annual salaries are fixed costs but other types of compensation, such as commissions or overtime, are variable costs.
Is packaging a variable cost?
Supplies and Packaging Materials
Materials used to supply and package goods are considered variable costs because they change with the production and sales volume.
Is electricity a variable cost?
However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured. In short, if the total cost associated with the cost object changes when the production amount changes, it’s likely a variable cost.
What are fixed and variable costs?
In accounting, fixed costs are expenses that remain constant for a period of time irrespective of the level of outputs. Variable costs are expenses that change directly and proportionally to the changes in business activity level or volume.
Is advertising a fixed or variable cost?
fixed
While businesses have a fixed budget for marketing, they can allocate a certain budget for advertising within that fixed marketing budget. Therefore, advertising is not a fixed cost, but rather a current expense. This means that businesses need to invest in advertising, be it print or online.
Is GIF pronounced JIF or GIF?
“It’s pronounced JIF, not GIF.” Just like the peanut butter. “The Oxford English Dictionary accepts both pronunciations,” Wilhite told The New York Times. “They are wrong. It is a soft ‘G,’ pronounced ‘jif.