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Costs that need to be payed regardless of whether or not your business makes a sale/profit.
Kathlyn Feil
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.
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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.
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.
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?
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.
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.
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.
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.
Fixed costs are those costs which are what?
Fixed and do not change. A variable cost changes. Fixed costs are things like rent, salaries, or any other cost that does not change over time.
