Question

give two examples of fixed cost of a firm

Answer 1

Amortization. This is the gradual charging to expense of the cost of an intangible asset (such as a purchased patent) over the useful life of the asset.Depreciation. This is the gradual charging to expense of the cost of a tangible asset (such as production equipment) over the useful life of the asset.Insurance. This is a periodic charge under an insurance contract.