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It remains the same per unit regardless of activity level

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13y ago

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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 capital a fixed cost?

capital is a fixed cost


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


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.


Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?

rental


Is clerical salaries a fixed cost or variable cost?

its a fixed cost


Is the fixeds selling cost is fixed cost?

Selling cost which remains fixed and don't have any impact on production level is called fixed cost.


What cost is not a fixed cost?

A cost which varies with the level of production activity is not a fixed cost and called variable cost.


Which of the following describes the possible pricing pattern of firms in perfect competition?

each firm charges a different price to allow for difference fixed cost


Is the cost of a new factory an example of a fixed cost?

yes it is an example of fixed cost


How do you calculate your variable cost and fixed cost given total costs and sales volumes?

Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.


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).

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