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Fixed costs are those costs which remains fixed and don't have any relation with the quantity of the product produced like administration staff salaries etc.
Stanford Davis
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∙ 10y agoFixed Cost remains fixed and does not change with change in number of units produced or manufactured and has no relation with volume of activity.
For example, for a munufacturing facility, rent is usually a fixed cost because the rent doesn't change with the volume of activity. In a retail mall, however. rent may be partially fixed and partially variable because a retail lease often includes both a base rent and variable component based on the store's gross sales of merchandise.
Wiki User
∙ 13y agoFixed cost refers to the repetitive and unchanging cost incurred within the scope of normal operations. For instance, the rent for store footage is as fixed cost as it remains (mostly) constant from month to month, is not related to sales or the lack thereof, and cannot readily be modified.
Wiki User
∙ 10y agoFixed costs are those costs which remains fixed and don't have any relation with the quantity of the product produced like administration staff salaries etc.
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