Yes normally rent is fixed expense and need to be paid even there is no production at all.
Fixed
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
Some general expenses are fixed, meaning that they are the same amount every month, but many are not. When the expense depends on usage, such as electricity, it will not be fixed, but will vary from month to month. An example of a fixed general expense would be a monthly retainer or fee paid to an accountant or lawyer. If the expense is the same amount every month, it is called a fixed cost.
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.
Yes normally rent is fixed expense and need to be paid even there is no production at all.
Fixed
Fixed expense plus a variable
Budget items that remain the same month to moth is an example of a fixed expense that is paid for with discretionary funds. Discretionary fund is the money that is subject to one's own control.
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
Some general expenses are fixed, meaning that they are the same amount every month, but many are not. When the expense depends on usage, such as electricity, it will not be fixed, but will vary from month to month. An example of a fixed general expense would be a monthly retainer or fee paid to an accountant or lawyer. If the expense is the same amount every month, it is called a fixed cost.
Rent food car payment electric bill
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
The budget items that always have the same value over a given time period
To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.
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.
If amount of sales commission is fixed and not base on number of units sold then it is fixed expense and vice versa.