I would suggest that a possible fixed cost would be the salary of the owner.
Yes a salesperson salary would be classified as a period cost.
Cost can be either fixed cost or variable cost. Fixed costs are the costs that are fixed in nature and do not vary with the change in scale of production. Example of fixed costs are: factory rent. Variable costs vary with the change in scale of production. Example: Raw material cost Net Margin= Sales- Fixed cost- Variable cost Decrease in fixed costs lead to increase in margin of an organization; keeping all other things constant. Sometimes, benefit of decrease in fixed cost may be transferred to the consumer in the form of lower price. Lower price results in higher sales volume with lower sales margin per unit.
A semi-fixed cost is fixed over a given, small range of activity, and above that level of activity, the cost suddenly jumps. It stays fixed again for a while at the higher range of activity, and when the activity moves out of that range, it jumps again. A semi-fixed cost moves upward in a step fashion, staying at a certain level over a small range and then moving to the next level quickly. All fixed costs behave this way, and a wholly fixed cost is also fixed only as long as activity remains within the relevant range. However, a semi-fixed cost is fixed over a smaller range than the relevant range of a wholly fixed cost. An example of a semi-fixed cost is the nursing staff in a hospital. If the hospital needs one nurse for every 25 patients, then each time the patient load increases by 25 patients, one additional nurse will be hired and total nursing salaries will jump by the additional nurse's salary. That is in contrast to administrative staff salaries at the same hospital, which might remain fixed until the patient load increases by 250 patients, at which point an additional admitting clerk would be needed. The administrative staff salaries are wholly fixed costs (over the relevant range), whereas the nursing staff salaries are semi-fixed costs.
The cost of insurance premia on factory building is recurring expenditure and to be shown on the lefthand side of the Profit & Loss A/c of the company. This not at all a fixed cost.
If salary is on per lecture basis then it is variable cost otherwise it is fixed cost.
Fixed
fixed cost
A supervisor's salary typically is considered a fixed cost. The salary of a supervisor typically would not be variable, unless there were other things involved, such as bonus pay.
Variable if the psychiatrist is paid at a certain rate hourly or daily; fixed if the salary is fixed for a given period (i.e.) annually).
Because the production manager's salary remains the same, regardless of the production level, this salary is a fixed cost, not a variable cost.
variable
If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.
If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
I would suggest that a possible fixed cost would be the salary of the owner.
a. A Store Manager's salary when the cost object is a unit of product b. An Auditor's Salary when the cost object is the Audit Department c. The Director's fees when the cost object is the Production Department d. A Production supervisor's Salary when the cost object is the Stores dept