![]() |
Are fixed costs always fixed? |
[Edit] |
First: Fixed costs remain fixed in this sence that it does not concern whether you r doing production or not or how much you are doing production. For example factory building rent... you are paying the rent of the building even if you are making goods or not.
Second: Fixed costs remain fixed for a certain range of production units and after that if you want to increase from that production capacity range this fixed cost also change. For example if you acquire a factory buiding for godown and it has a capacity to story 100 product units so uptill the range of 100 units your fixed cost remain same but when you need to store more units you need to acquire more space and definately need to pay more rent so now your fixed cost is change but still upto certain range after that range you may need more space and need to pay more rent.
So fixed cost remain fixed upto certain level of activity and after that it changes and become fixed again upto next capacity level of activity.
First answer by ID3372286921. Last edit by Jabirshah. Contributor trust: 79 [recommend contributor]. Question popularity: 63 [recommend question]
|
Also see on Answers.com Research your answer: |
- What are the relationship between external custermers and internal custermers?
- What are some special skills that the chairperson of the american red cross may need?
- The posting process will include the transfer of the following information from the journal to the account?
- Internal and external energy sources?





