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Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
NO both are not same as fixed cost is cost which remains fixed with change in production level while indirect cost is that cost which is not directly related for the production of units.
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Fixed assets are also tangible assets with the following characteristics: (1) for the production of goods, provide services, for rental or administrative purposes; (2) to a term of over one year; (3) high unit price. Classified by economic use of fixed assets, fixed assets can be divided into production and business class business class of all fixed assets of .1 non-production, production and operation class of fixed assets, is the direct service of production, business process various types of fixed assets. Such as the production and management with houses, buildings, machinery, equipment, utensils, tools. 2, non-production business with the fixed assets is not directly serving production and business processes of various fixed assets. Such as dormitories, dining hall, bathrooms, hairdressing room and so the use of housing, equipment and other fixed assets, etc.. Hug the use classification of fixed assets can be divided into fixed assets in use, no use of fixed assets and fixed assets not required. Classification of the ownership of fixed assets can be divided into fixed assets owned fixed assets and rental income. Leased fixed assets are divided into operating lease of fixed assets and fixed assets financed by leasing. The economic use of fixed assets and use of comprehensive classification: 1, production and operation of fixed assets. 2, with fixed assets of non-production operations. 3, leased fixed assets. Means the lease under operating lease of fixed assets to other units. 4, No need for fixed assets. 5, no use of fixed assets. 6, the land. That in the past has accounted for the land alone. Paid for land acquisition compensation fee, should be included in land-related housing, the value of the building, 7, fixed assets financed by leasing. Details of fixed assets subject to classification according to the set, also can directly write the name of the specific device. The use of accounting software have now fixed detailed title. Subjects use a lot, as long as the related fixed assets accounting are required.
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
minimize capital investment.Continuity of operation is ensured.Less total production cost less material movement
advantages of small scale production
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Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
The Fixed Proportion Production Function, also known as a Leontief Production Function implies that fixed factors of production such as land, labor, raw materials are used to produce a fixed quantity of an output and these production factors cannot be substituted for the other factors.
fixed if for mass production while programmable is for batch production
disadvantages of Production Structures
what are the advantage and limitations of fixed income securities
The positive results of the mass production of a particular product is that more of the product is made available and it should cost less than prior to its mass production. The downside of mass production is that craftspeople cannot compete in price with a product they produce by hand. However, it should be noted that the crafts person can produce a higher quality product.
The advantages of batch production is that it can reduce initial capital outlay. It can be useful for small businesses who cannot afford to run continuous production lines.
NO both are not same as fixed cost is cost which remains fixed with change in production level while indirect cost is that cost which is not directly related for the production of units.
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