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Q: What is an example of a fixed cost for a company?
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What is fixed cost in economics?

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.


Is the cost of a new factory an example of a fixed cost?

yes it is an example of fixed cost


What are examples of fixed and variable cost in transportation company?

Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.


What is an example of fixed cost?

Rent is a fixed cost it is any cost that stays the same every month.ANSWERinsurance


Fixed cost example?

Cheese


When is fixed cost relevant in decision making?

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.


When fixed cost treated as relevant cost?

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.


What is a fixed cost ratio?

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.


Examples of variable cost and fixed cost?

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.


Is advertising cost fixed or variable?

Advertising is a fixed cost. Many business allocate money to each quarter to cover their advertising cost for their company.


Which is an example of a monthly fixed cost for s sandwich shop?

An example of a monthly fixed cost for a sandwich soap is the monthly rent or the wages that they pay monthly.


What is a fixed cost?

A cost that remains constant, regardless of any change in a company's activity.