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Explain with an example, the meaning of fixed costs. - Commercial Applications

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प्रश्न

Explain with an example, the meaning of fixed costs.

Explain fixed cost with suitable examples.

संक्षेप में उत्तर

उत्तर

  1. Fixed costs are those costs that remain fixed in amount irrespective of changes in the volume of output during a given period of time.
  2. Such costs do not change with changes (increase or decrease) in the level of activity up to a certain limit.
  3. Rent, insurance, and the depreciation of plants are examples of fixed costs.
  4. Salaries for permanent staff are considered fixed costs.
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Classification of Costs
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 8: Fundamental Concepts of Cost - EXERCISES [पृष्ठ १३९]

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