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Why does e commerce reduce fixed costs?
E-commerce reduces fixed costs because it eliminates or reduces many fixed costs such as location, employees and insurance.
How can a firm reduce its fixed costs per units sold?
Fixed costs include rent, salaries, utilities, and other expenses that don't depend on the number of units produced. One obvious way to reduce fixed costs per unit sold would be to sell more units. Other ways might include: reducing salaries, finding a cheaper place to rent, and investing in energy-efficiency measures to reduce utility costs.
What does fixed costs means?
what does fixed costs mean
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Is fixed costs is a period costs?
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
What happens to sales when fixed costs decrease?
When fixed costs decrease, what does this do for sales?
Why do US companies outsource jobs?
To reduce labor costs
Fixed costs are those costs which are?
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
Why are committed fixed costs the most difficult of fixed costs to change?
Some committed fixed costs are the most difficult of fixed costs to change because they are required to maintain basic operations. For example, rent is a fixed cost that is difficult to change because it is bound by a lease.
What are some examples of committed fixed costs?
leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.
How many types of cost?
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
