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A fixed cost is one an organization must pay whether or not it does any business. Rent is a fixed cost. Interest on a loan is a fixed cost. You either pay the interest on your loan or go bankrupt like General Motors.
Other costs can be fixed or variable depending on the business.
Inventory is variable. If sales are low, you keep a low inventory and do not keep much money tied up in stuff that is not selling. Labor can be a variable cost. With the right kind of business, you can have layoffs and when business picks up, hire more workers. Union contracts might make labor a fixed cost.
What else can I help you with?
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
What determines the difference between a variable and a fixed cost?
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.
Production cost is which kind of cost variable or fixed cost?
variable
Is maintenance on production equipment a fixed variable or mixed cost?
fixed and variable
What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Utilities is variable cost or fixed cost?
it is obviously variable
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Is freight in a variable of fixed cost?
Variable
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
Is administration a fixed or a variable cost?
Fixed
