what does fixed costs mean
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.
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.
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
Impairment costs are not considered fixed costs; they are classified as variable costs because they can fluctuate based on the value of an asset and its impairment assessment. Impairment occurs when an asset's carrying amount exceeds its recoverable amount, leading to a write-down that can vary over time. This means that impairment costs can change with market conditions or operational performance, unlike fixed costs, which remain constant regardless of production levels.
No these are costs such as rent stay basically same irrespective of output
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.
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.
When considering how changes in volume affect total fixed costs, it is important to keep in mind that fixed costs remain constant regardless of the level of production or sales. This means that as volume increases, fixed costs per unit decrease, but total fixed costs remain the same. It is essential to understand this concept for accurate cost analysis and decision-making.
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
When fixed costs decrease, what does this do for sales?
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
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.
E-commerce reduces fixed costs because it eliminates or reduces many fixed costs such as location, employees and insurance.
E-commerce reduces fixed costs because it eliminates or reduces many fixed costs such as location, employees and insurance.
Means all the bills and expenses for the business are the same every month.
leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.