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11y ago

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What is the cost that is obligatory to pay and cannot be reduced in the short-term is called?

Fixed Cost


Does committed fixed cost have a short term planning horizon usually one year?

"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!


Do committed fixed costs have a short-term planning horizon?

"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!


Explain the difference between term fixed cost and joint cost?

well i dont know ..but i think fixed cost which means the cost will distributed to labors and other variables but joint cost i dont know about it


What is The term applied to the periodic transfer of a fixed asset's cost to expense is?

Depreciation


Is fixed asset a fixed cost?

A fixed asset is an item/asset that can or does generate income/revenue and its value does not flutuate in the short term. A fixed cost is an expense that is repetative such as your real estate tax and utility bills So the short answer is no. These are two different and opposite items


Give another example of a fixed cost?

A fixed cost is one that does not change. At least for about a year or so. Good examples of fixed costs would be insurance, rent, periodic load payments, interest paid, fixed permanent employee salaries.


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


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

rental


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.