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प्रश्न
Explain with an example, the meaning of fixed costs.
Explain fixed cost with suitable examples.
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उत्तर
- Fixed costs are those costs that remain fixed in amount irrespective of changes in the volume of output during a given period of time.
- Such costs do not change with changes (increase or decrease) in the level of activity up to a certain limit.
- Rent, insurance, and the depreciation of plants are examples of fixed costs.
- Salaries for permanent staff are considered fixed costs.
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संबंधित प्रश्न
Write a short note on direct costs.
Distinguish between Fixed cost and Variable cost.
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Variable cost is a cost that ______.
The cost remains same at all levels of output is called ______ cost.
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Which of the following best describes a fixed cost?
Distinguish between direct costs and indirect costs.
The term "variable costs" refers to ______.
"Some costs are semi-variable in nature." Comment.
