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leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.
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Why are committed fixed costs the most difficult of fixed costs to change?
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.
What are some examples of fixed costs?
* Rent * Payroll for Salaried Employees
What are examples of fixed and variable cost in an airline company?
Some of the Variable costs are Fuel Cost, energy, and operating cost
What are examples of fixed and variable cost in shopping center?
Some fixed costs of running a shopping center would be rent, employee salary (if not commission based), utilities (if you maintain consistent hours of operation). Some variable costs would be Cost of goods sold, commissions, and perhaps shipping costs.
Why it is sometimes difficult to separate costs into variable costs and fixed costs?
Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.
Is indirect material fixed costs or variable costs?
Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.
Why it is sometimes difficult to separate costs into variable and fixed costs?
Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.
What are some examples of fixed income jobs?
Some examples of fixed income jobs include those in the securities sector. Jobs in research, analysis, and trading are all covered by the fixed income model.
Are all direct cost are variable?
Yes generally direct costs are variable costs but there may be some direct costs which can be fixed costs as well.
What are some examples of fixed assets?
Ownership of land.
Are fixed costs always irrelevant?
No fixed costs are not always irrelevant. Some fixed costs may differ among the alternatives and hence will be relevant. e.g. When figuring the incremental cost of the more expensive car, the relevant costs would be the purchase price of the new car (net of the resale value of the old car) and the increases in the fixed costs of insurance and automobile tax and license.
What cost contains a combination of fixed and variable costs?
Many costs includes fixed as well as variable portion for example electricity cost in which there may be some portion of expense which remains fixed while some change due to higer or lower production.
