Want this question answered?
yes it is an example of fixed cost
Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.
Rent is a fixed cost it is any cost that stays the same every month.ANSWERinsurance
Cheese
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.
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.
yes it is an example of fixed cost
Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.
Rent is a fixed cost it is any cost that stays the same every month.ANSWERinsurance
Cheese
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.
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.
Here's an example - If a company knows that a product costs a certain amount (wholesale) that's a fixed cost. Now, they usually mark up that price three times before they sell it to you. Their fixed cost ratio is 1/3. If they mark it up five times the cost, their ratio is 1/5.
Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.
Advertising is a fixed cost. Many business allocate money to each quarter to cover their advertising cost for their company.
An example of a monthly fixed cost for a sandwich soap is the monthly rent or the wages that they pay monthly.
A cost that remains constant, regardless of any change in a company's activity.