what does fixed costs mean
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
what does fixed costs mean
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
When fixed costs decrease, what does this do for sales?
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
Some committed fixed costs are the most difficult of fixed costs to change because they are required to maintain basic operations. For example, rent is a fixed cost that is difficult to change because it is bound by a lease.
E-commerce reduces fixed costs because it eliminates or reduces many fixed costs such as location, employees and insurance.
E-commerce reduces fixed costs because it eliminates or reduces many fixed costs such as location, employees and insurance.
In economics fixed costs are just that, not dependent on production, for example rent is fixed, at least for a tear. Variable costs , such as energy, raw materials, vary according to the level of production. A business can carry on, at least for a while, not paying fully for it's variable costs. It will cease production if fixed costs cannot be paid.
leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.
You should consider the huge fixed and sunk costs for setting up a solar energy system.