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What are contractual expenses?

Updated: 9/24/2023
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Are contractual expenses fixed expenses?

A fixed cost is one that does not change irrespective of the volume of business that is experienced by the business. Contractual expenses may, at first thought, seem fixed but there is insufficient information in the question to be sure. The contract may involved a sliding scale of expense or may involve increased or decreased expense according to a variety of conditions within the contract. Therefore it does not necessarily follow that a contractual expense is also a fixed expense.


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