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Equipment is generally considered a fixed cost because it does not change with the level of production or sales within a certain range. Fixed costs, like equipment, are incurred regardless of how much a company produces. However, maintenance and operational expenses related to the equipment can be variable costs, as they may fluctuate based on usage.

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1w ago

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Related Questions

Is maintenance on production equipment a fixed variable or mixed cost?

fixed and variable


Is depreciation on manufacturing equipment a variable cost?

Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.


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


Is straight-line depreciation on equipment fixed or variable?

It is considered as fixed overhead cost because it doesn't dependant on level of production


Is depreciation on equipment fixed or variable?

Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.


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


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.

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