Fixed Cost
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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 |