Cost Meanings

Fixed Cost:

Fixed costs Means that the Cost tends to be unaffected with the volume of output. It depends up on the  time, Fixed cost does not change with an increase or decrease in the number of goods or services produced or sold. Once established, fixed costs do not change over the life of an agreement or cost schedule. It is also called period cost.  indirect costs or overhead costs

Eg: Rent Salaries,Property taxes

Formula:

 Fixed Cost= Total Cost - Variable Cost


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