Fixed costs are those which are fixed for the production period. Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.
Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Fixed cost is a cost which do not change in total during a given period despite changes in output. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
Fixed costs are those costs which do not change with change in output. They remain constant at all levels of output. Example: Salary of the permanent staff and rent of the factory building, etc.
Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.
A fixed cost is a cost that doesn't change much in value regardless of factors like sales revenue or output. Fixed costs tend to be ongoing costs, like insurance, wages, depreciation, rent and interest.
Solution(By Examveda Team) An example of fixed cost rent for building. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
Q.Which of the following is not an example of variable costB.piece-rate wages paid to manufacturing workersC.wood used to make furnitureD.commissions paid to sales personnelAnswer» a. straight line depreciation on a machine expected to last five years1 more row
Q.Which one of the following is not a cost unit?B.Credit divisionC.Patient dayD.Tonne-mileAnswer» b. Credit division1 more row
Fixed cost are those cost which are incurred on fixed factors of production such as capital equipment, plant, building, land, salary of permanent staff, etc. Fixed costs don't change with the level of output in the short run. It remains same even at zero level of output.
Variable costs can increase or decrease based on the output of the business. Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.
Which of the following is a fixed cost for a firm? Notes: Fixed cost is the Expenditure on hiring/purchasing of fixed inputs which is land. Whereas labor is variable cost as the input is variable with time. The other costs available are Explicit and Implicit cost.