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Fixed Cost is the cost which remains constant at all levels of production during short period. It is the basic expenditure requirement of a business which is needed even at zero level of production.
example: minimum telephone expenses
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When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Is capital a fixed cost?
capital is a fixed cost
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed cost
What does AFC stand for in economics?
average fixed cost
What is the meaning of fixed cost in economics?
the cost which is not change with production fixed cost example rent of factory , employee salaries in case of manufacturing unit , fixed electricity charge etc.
What is fixed cost in economics?
Fixed are the cost that are not affected the by the fluctuations in the level of activity. As an example the rent cost of a apperal manufacturing company would be a typical example of a fixed cost in short run as rental is not affected by the level of activity that is produced.
What is a cost that stays constant is a?
This is called a fixed cost.In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.
What is a cost that stays constant for a process?
This is called a fixed cost.In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.
What is a cost that remains constant in a total at various levels of activity?
This is called a fixed cost.In economics, fixed costs, are business expenses that are not dependent on the level of goods or services produced by the business.
Does a curved line have a fixed value for its slope in economics?
No. This is true for any curved line, not just in economics.
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Is capital a fixed cost?
capital is a fixed cost
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
What is land in economics?
In Economics, land comprises all naturally occurring resources whose supply is inherently fixed
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
