c. fixed costs.
Fixed costs are business expenses that don't depend upon the extent of products or services produced by the business. These expenses are time-related, like salaries or rental expenses that are paid monthly, and are often spoken as additional expenses.
<h2>Further explanation
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In economics, fixed costs are business expenses that don't depend upon the extent of products or services produced by the business. These expenses are time-related, like salaries or rental expenses that are paid monthly, and are often spoken as additional expenses. This differs from variable costs associated with volume (and is paid per goods/services produced).
In management accounting, fixed costs are defined as unchanging distribution as a function of the activities of a business within the same period. for instance, a retailer must pay bills for rent and facilities notwithstanding the sale.
Together with variable costs, fixed costs form one in all two components of total costs: total costs capable fixed costs plus variable costs.
Variable costs are costs that change proportionally to business activities. Variable costs are the entire marginal costs of all units produced. this will even be considered normal costs.
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Details
Class: High School
Subject: Business
Keywords: fixed, variable, costs
