What are Fixed Costs

Average Fixed Cost Topics Economics fixed cost

When fixed costs are allocated to a specific department or product line, the allocated portion directly reduces the gross profit For example,

fixed cost 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 cost is one of the two major components of the total cost of production The other component is the variable cost Examples are monthly Fixed costs are stable business expenses They are set by time, rather than production Regardless of their business type, business owners must understand

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