Difference between revisions of "Variable costs"
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(Created page with "Variable costs are those that can be specified on a per head basis for each class of stock and change in proportion to the number of cattle carried in different classes eg. hu...") |
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Revision as of 05:40, 26 August 2020
Variable costs are those that can be specified on a per head basis for each class of stock and change in proportion to the number of cattle carried in different classes eg. husbandry, animal health, feed and handling costs. Generally, a variable cost meets the test of one more animal equals one more unit of cost.
Allocating variable costs on a per head basis ensures that this component of the cost structure adjusts with any change in herd structure or size over time and accurately reflects the variable costs incurred by herds of various sizes.