Fixed cost

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  • Difference Between Fixed And Fixed Cost

    850 Words  | 4 Pages

    Fixed Cost: Fixed cost as the name suggests implies any cost that remains fixed or does not change due to an increase or decrease in the amount of services or goods produced. It is a periodic cost that remains unchanged irrespective of the sales revenue or output, such as depreciation, insurance, wages, salaries, etc. The concept of fixed cost is used in short-term accounting. Fixed costs are those expenses that are necessary to be paid by a company, independent of any business activity that is

  • Fixed and Variable Costs

    878 Words  | 4 Pages

    Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost 's reactions to activity level. A cost may rise, fall, or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided, often referred to as activity, utilization, or volume (Gapenski, 2012). When dealing with the future there is a level of uncertainty of volume with regard

  • Total Fixed Costs

    1152 Words  | 5 Pages

    typical production cost of one water bottle unit is $20. Total fixed costs for my company including rent and utilities are $4000 per month. Given these numbers a linear cost function for my product can be constructed; C(x) = 20x + 4000. In this equation x represents water bottles produced each month at a price of $20 along with $4000 of total fixed costs. An estimated total cost per month can then be determined of $120,000 looking at what the company can afford. Using the cost function C(x), we can

  • Classification of Cost Behavior: Variable or Fixed

    1768 Words  | 8 Pages

    |Course Code |MBA 625 |Course Name |Corporate Finance | |Date | |Due date |Week 4 | |Maximum Marks |100 |Weight |20% | |Learning Outcomes |LO1, LO2 ,LO3,LO4,LO5

  • Difference Between Variable Cost And Fixed Cost

    878 Words  | 4 Pages

    Fixed Costs: Fixed costs are the costs that are independent of the amount of goods or services produced by the business. For example rent, salaries. For fixed costs, you have to pay them even if you do nothing. Variable Costs: A variable cost can vary in relation to the amount of business activities. For example raw material, energy usage, labour, logistics, etc. Marginal Costs: It can be defined as the additional cost (increase or decrease)

  • Computer Equipment : Fixed Cost And Variable Cost

    804 Words  | 4 Pages

    Exhibit 2 has fixed cost and variable cost both in the report. Other cost we need to look it is the opportunity of the purchased computer equipment which has a value of around $25,500. The lease computer equipment is cannot be cancelled, so we consider it a sunk cost and do not take it into consideration. Next, we need to look at the purpose of creating PDS. The purpose was to help deregulate PTC and rescind the push through of a rate increase. If they shutdown PDS, PTC would have to pay market

  • Hsm/260: Fixed Costs, Variable Costs, and Break Essay

    627 Words  | 3 Pages

    HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500

  • Using Fixed And Variable Costs Within The Report

    821 Words  | 4 Pages

    Exhibit 2 contains both fixed and variable costs within the report. Other costs we must look at is the opportunity of the purchased computer equipment, which has a value of roughly $25,500. The leased computer equipment cannot be cancelled, thus we consider it a sunk cost and do not take it into consideration. Next, we look at the purpose of creating PDS. The purpose was to help deregulate PTC and rescind the push through of a rate increase. If they shut down PDS, PTC would have to pay the market

  • Fixed Costs Associated With Conducting Business As Joints Ortho

    473 Words  | 2 Pages

    Operating costs are expenses supplementary with the operations, maintenance and administration of a business on a daily basis. The operating cost is a component of operating income and is customarily included on a company’s income statement. A business's operating costs consist of f two core constituents, fixed costs and variable costs. A fixed cost does not change with an increase or decrease in sales or productivity and must be paid regardless of the company's activity or performance (Lowengrub

  • Kroger Fixed Cost

    575 Words  | 3 Pages

    Fixed and Variable Costs Company’s fixed and variable cost can affect the level of competition in this industry. Companies have high fixed costs and variable costs in the market, they will try to cut prices to increase demand in their stores in operation. In the grocery retail industry in the US market, the majority of grocery retailers have and operate their own stores and distribution center, and these increase Kroger’s fixed cost because of overhead and maintenance cost. Even if the fixed cost

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