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.
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.
Which cost decreases with increase in the volume of output?
Which of the following cost is time based?
Which of the following best describes a fixed cost?
Direct cost increases when ______.
Explain the following:
Sunk cost
Distinguish between shut down cost and sunk cost.
The term “variable costs” refers to ______.
Fixed cost per unit decreases when ______.
A cost that is easily traceable to a cost object is known as ______.
"Some costs are semi-variable in nature." Comment.
Give an example of Semi-Fixed cost.
Explain with an example the meaning of variable costs.
Write short notes on Variable Costs.
