Question

What is an example of a fixed cost?

Answer 1

The cost of the building(s) being used for the production processes. Doesn’t vary by how many products are produced there in it’s cost (commercial mortgage or rent and maintenance although for manufacturing you’d want to break out the utilities since process heat or powering equipment is a big, variable number that can be 10–20% of total manufacturing costs.)


thanks

Answer 2

☺️☺️heyaa!!!!

Fixed expenses are those expenses that do not change when there is a change in production or sales level.
Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed expenses.

thankyou...
❤️