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Can you explain the answer of this question below:
Fixed cost is known as _______cost.
- A:Prime
- B:Supplementary
- C:Overhead
- D:Direct
The answer is c.
Verified Answer
Can you explain the answer of this question below:Fixed cost is known ...
Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. Fixed cost is known as Overhead cost.
Most Upvoted Answer
Can you explain the answer of this question below:Fixed cost is known ...
Fixed cost is a type of cost that remains constant irrespective of the level of production or sales. It is also known as overhead cost. It is an essential part of the total cost of production, and it does not vary with the amount of production or sales.
Examples of Fixed Cost:
- Rent
- Insurance
- Property taxes
- Salaries of permanent employees
- Depreciation of machinery
Characteristics of Fixed Cost:
- Fixed cost remains the same in the short run, irrespective of the level of production.
- It is not affected by the level of sales or production.
- It is incurred even if there is no production or sales.
- It is a necessary cost to keep the business running.
Importance of Fixed Cost:
- It helps in determining the breakeven point of the business.
- It helps in calculating the profit and loss of the business.
- It helps in deciding the selling price of the product.
Conclusion:
Fixed cost is an important part of the total cost of production, and it needs to be carefully managed to ensure the profitability of the business.
Examples of Fixed Cost:
- Rent
- Insurance
- Property taxes
- Salaries of permanent employees
- Depreciation of machinery
Characteristics of Fixed Cost:
- Fixed cost remains the same in the short run, irrespective of the level of production.
- It is not affected by the level of sales or production.
- It is incurred even if there is no production or sales.
- It is a necessary cost to keep the business running.
Importance of Fixed Cost:
- It helps in determining the breakeven point of the business.
- It helps in calculating the profit and loss of the business.
- It helps in deciding the selling price of the product.
Conclusion:
Fixed cost is an important part of the total cost of production, and it needs to be carefully managed to ensure the profitability of the business.
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Can you explain the answer of this question below:Fixed cost is known ...
Becoz u can't ignore fixed cost weather we earm.or not but we r required to pay fixed cost
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Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c.
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Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c. for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c. covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c..
Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c. for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c. covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Fixed cost is known as _______cost.A:PrimeB:SupplementaryC:OverheadD:DirectThe answer is c..
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