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Fixed costs are costs that donot vary with the quantity of the product produce and have no relation with volume of product like administration staff salary or building rent etc.
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What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
Why are variable costs more relevant than fixed costs in short-term decision making?
Fixed costs are costs that cannot be changed in the short-term without causing significant harm to the organization. Because you cannot change them, you should not consider them in comparative analysis of alternatives.
Ensco Lighting Company has fixed costs of 100000 sells its units for 28 and has variable costs of 15.50 per unit?
Break-even is 8,000 units. 100,000/(28-15.50)=8,000
How linear equations came in to use?
There are many real life situations in which two variables are related through a linear equation. Some examples from those used in schools: Temperature in Celsius and Fahrenheit scales Manufactrunig costs as fixed costs plus unit costs Cab fares as fixed amount plus distance-related amount Workmen charges as call out plus hourly rate
When other factors are constant what is the effect on profits of an increase in fixed costs Of a decrease in variable costs?
From the perspective of the income statement and profits, there is no difference between bucketing costs in variable or bucketing them in fixed. The operating profit line of the income statement takes both costs into account so that an increase in one with an offsetting decrease in another will have zero impact to profits. Issue related to bucketing of certain items are normally internal discussions for a business and relate to various scorecards or metrics of interdepartmental performance. In most businesses there are separate mgrs and depts responsible for variable cost and fixed costs so the debate over where to bucket certain items is driven by whose scorecard they fall onto and ideally costs should be bucketed internally onto the scorecard of the mgr/dept with the greatest ability to influence those costs.
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.
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.
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 some examples of committed fixed costs?
leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.
How many types of cost?
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
Fixed costs are those costs which are what?
Fixed and do not change. A variable cost changes. Fixed costs are things like rent, salaries, or any other cost that does not change over time.
