Fixed Cost: Difference between revisions
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{{Learning concept | {{Learning concept | ||
|Description=A fixed cost is a cost that remains constant, in total, regardless of changes in the level of activity. Examples of fixed costs include straight-line depreciation, insurance, property taxes, rent, supervisory salaries, and advertising. | |Description=A fixed cost is a cost that remains constant, in total, regardless of changes in the level of activity. Examples of fixed costs include straight-line depreciation, insurance, property taxes, rent, supervisory salaries, and advertising. | ||
These costs do not vary with production or sales level. | |||
|Wikipedia reference=http://en.wikipedia.org/wiki/Fixed_cost | |Wikipedia reference=http://en.wikipedia.org/wiki/Fixed_cost | ||
}} | }} | ||
Latest revision as of 16:35, 13 January 2014
Description
A fixed cost is a cost that remains constant, in total, regardless of changes in the level of activity. Examples of fixed costs include straight-line depreciation, insurance, property taxes, rent, supervisory salaries, and advertising.
These costs do not vary with production or sales level.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Fixed cost
Learning Material
Covered in Topic(s)
| Cost Terms Concepts and Classification |
| Pricing Strategies |