Regardless of what are the fixed costs, profit maximization level of output of 4,000 units. 翻译结果4复制译文编辑译文朗读译文返回顶部 No matter what is the cost, and fixed output level the maximum profit for 4000. 翻译结果5复制译文编辑译文朗读译文返回顶部 Regardless of the fixed cost is how...
Let’s start with the basics. Fixed costs are the expenses your business incurs that remain constant, regardless of how much you’re producing or selling. Think of them as the baseline expenses you have to cover, no matter what. Unlike variable costs—which fluctuate based on your business a...
What are fixed costs? Fixed costs are expenses that stay the same regardless of how much a business makes or sells. Predictable and consistent, these fixed costs make budgeting, forecasting, and cash flow management easy as expenses remain the same and roll in at regular intervals. ...
buildings, depreciation, etc. In short run, fixed factors cannot vary and accordingly the fixed cost remains the same through all output levels. These are also called overhead costs.
It doesn’t take much revenue for such service businesses to break-even, but the amount of profit generated after that point generally remains about the same. Profits don’t skyrocket after all the fixed costs are covered, as they do with high-fixed-cost ventures. In general, keeping fixed...
Fixed costsdonot vary with the number of goods or services a company produces over the short term. For example, suppose a company leases a machine for production for two years. The company has to pay $2,000 per month to cover the cost of thelease, no matter how many products that mach...
These are expenditures that could appear one accounting period, and totally disappear (or double!) by the next. So they are important to factor into your bookkeeping processes. Together, fixed costs and variable costs make up a company’s total costs. That number is important for company ...
Examples of Fixed Costs Assume the rent for a production facility is a fixed cost of $120,000 per year and there are normally 30,000 machine hours of good output during a year. At that volume of activity, the rent is $4 ($120,000/30,000) per machine hour. If there are 40,000 ...
Since fixed costs are unrelated to a company’s production of goods or services, they are generally indirect costs. A fixed cost is one of two different types of business expenses that together produce total cost. The other is a variable cost. ...
What is a fixed cost?Fixed cost (definition) Fixed costs are expenses that stay the same no matter how much activity a business is doing. They’re the opposite of variable costs. Fixed costs have to be paid even if a business doesn’t do any trade for the day. They tend to include ...