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Does committed fixed costs have a short term planning horizon-usually one year?
Wiki User
∙ 14y ago
False
Wiki User
∙ 14y ago
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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.
What are fixed costs in the long run?
There is no fixed answer because all costs are subject to change in the long-run.
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.
What are a business firm's fixed and variable costs of production?
Fixed costs are costs that do not vary with the level of output, such as rent and insurance premiums. Variable costs are costs that change with the level of output, such as wages and raw materials.
How does the planning of fixed overhead costs differ from the planning of variable overhead costs?
it doens't
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.
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!
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.
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!
Explain discretionary fixed costs and committed fixed cost?
Discretionery Fixed Cost: It is cost which arise from annual decisions of management to spend in specific fixed costareas, such as marketing and research.Commited Fixed Cost:These types of costs relate to a company's investment in assets such as facilities and equipment. Once such costs have been incurred, the company is required to make future payments
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.
