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Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed 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.
Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed 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 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.
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.
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 are stepped costs?
Stepped costs refer to expenses that remain fixed within certain ranges of production or activity levels but increase significantly when a threshold is crossed. For example, a business might incur a fixed cost for operating a certain number of machines, but once production exceeds that capacity, additional costs arise for new machinery or facilities. This creates a step-like cost structure, where costs jump at specific intervals rather than changing incrementally. Understanding stepped costs is crucial for budgeting and financial planning, as they can impact profitability at different production levels.
What is the meaning of fixed cost in economics?
the cost which is not change with production fixed cost example rent of factory , employee salaries in case of manufacturing unit , fixed electricity charge etc.
Is depreciation a fixed cost?
Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.
Do fixed cost change per unit?
Yes fixed cost remain fixed in overall amount but it varies as per unit for example if one unit produced fixed cost 50000 per unit fixed cost 50000 but if 2 units produced fixed cost remains 50000 but per unit fixed cost changed to 25000 (50000/2).
