Which of the following is most likely a fixed cost?

Which of the following are most likely fixed costs?

The most likely fixed costs among the options are Factory rent, Factory insurance, and Administrative salaries. Explanation: Fixed costs are expenses that remain constant, regardless of the level of production or activity within a business.

Are fixed costs short run or long run?

Fixed costs in any production process are considered only in the short run.

What are examples of fixed expenses?

Which of the following best describes a fixed cost?

Answer and Explanation:

The total fixed cost is the cost which does not change with the output or production volume within a relevant range.

What is an example of a fixed cost quizlet?

Examples of fixed costs include straight-line depreciation, insurance, property taxes, rent, supervisory salaries, administrative salaries, and advertising.

Which of the following is correct for fixed cost?

As fixed costs do not vary or change with the change in the level of production output. Thus even if the production level is zero, fixed costs are positive. For example: insurance, taxes, interest expenses etc. Hence, correct answer is option D.

How to find the fixed cost?

What is cost fixed price?

A fixed-price contract is a type of contract for the supply of goods or services, such that the agreed payment amount will not subsequently be adjusted to reflect the resources used, costs incurred or time expended by the contractor.

Which of the following costs are fixed?

Capital costs like the ones used to buy or lease a piece of machinery, equipment, or building are considered fixed in the short run. Regardless of the production levels or business activity, the said cost will remain constant and will not adjust in response to changes in volume.

Which is most clearly a fixed cost?

The most common examples of fixed costs include lease and rent payments, property tax, certain salaries, insurance, depreciation, and interest payments.

Is labor a fixed cost?

Labor costs, including minimum wage expenses, are considered semi-variable. Semi-variable costs have components of both fixed and variable costs. The cost of labor is always something that companies can expect to have but the amount they pay may vary. This makes it both fixed and variable.

Which is a fixed cost?

In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or rents being paid per month.

Which of the following are normally fixed expenses?

Fixed expenses are all reoccurring expenses – from rent or mortgage bills to car payments as well as tuition or childcare expenses for your children. Other bills that fall under this category include health insurance, life insurance, and essential utilities.

Which of the following best defines fixed cost?

Fixed Cost Definition

It is a business expense that stays constant, regardless of the volume of revenue produced in a business.

Which of the following expenses are usually fixed?

Prioritize budgeting for fixed expenses

Fixed expenses, such as rent, utility bills, insurance, and salaries are essential and should be prioritized in your budget.

What are 10 examples of fixed assets?

Some examples of fixed assets are land and land improvements; general infrastructure; buildings and building improvements; machinery and equipment; art, literature, and artifacts; software; and other intangible assets including right-to-use leased assets.

Which strategy will help you save the most money?

What is a fixed expense?

Fixed expenses are costs that largely remain constant, such as your monthly rent or mortgage. Variable expenses, on the other hand, are costs that may vary or be unpredictable, such as a car repair or a medical bill.

Which is not a fixed cost?

Fixed costs are those which are fixed for the production period. Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.

Are costs fixed in the short run?

Looked at from a short-run perspective, a firm's total costs can be divided into fixed costs, which a firm must incur before producing any output, and variable costs, which the firm incurs in the act of producing.