Advertisements
Advertisements
Questions
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
Solution
- 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
RELATED QUESTIONS
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.
Describe cost on the basis of behaviour.
Total variable cost per unit increases ______.
The cost remains same at all levels of output is called ______ cost.
Which cost decreases with increase in the volume of output?
Which of the following cost is time based?
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.
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Which of the following best describes a fixed cost?
Direct cost increases when ______.
What is opportunity cost?
Distinguish between controllable and uncontrollable costs.
Distinguish between shut down cost and sunk cost.
Distinguish between Direct Labour cost and Indirect Labour cost.
The term “variable costs” refers to ______.
Fixed cost is a cost which ______.
Amount spent to purchase a machinery is the example of ______ cost.
Give an example of Semi-Fixed cost.
