Advertisements
Advertisements
Questions
Explain with an example, the meaning of fixed costs.
Explain fixed cost with suitable examples.
Answer in Brief
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.
shaalaa.com
Classification of Costs
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Which definition best describes indirect costs?
Distinguish between Direct Labour cost and Indirect Labour cost.
Give an example of opportunity cost.
Fixed cost is a cost which ______.
Amount spent to purchase a machinery is the example of ______ cost.
Variable cost per unit increases when ______.
A cost that is easily traceable to a cost object is known as ______.
What do you mean by Semi-Fixed cost?
Classify cost according to its nature.
