Advertisements
Advertisements
प्रश्न
Explain with an example the meaning of fixed costs.
Explain fixed cost with suitable examples.
What do you understand by fixed cost? Explain with the help of an example.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Write a short note on direct costs.
A firm has to pay a fixed rent of ₹ 500 for the postpaid mobile bill and further pay extra charges for the calls made in a month. Identify the type of cost mentioned here.
Indirect material scrap is adjusted along with ______.
Variable cost is a cost that ______.
Total variable cost per unit increases ______.
Which definition best describes indirect costs?
Fixed cost is a cost which remains same at ______.
Direct cost increases when ______.
Explain the following:
Sunk cost
Distinguish between controllable and uncontrollable costs.
Distinguish between direct costs and indirect costs.
Distinguish between shut down cost and sunk cost.
Give an example of opportunity cost.
The term “variable costs” refers to ______.
Fixed cost per unit decreases when ______.
"Some costs are semi-variable in nature." Comment.
