Fixed Costs
Understanding fixed costs is very important when dealing with contracts. A contract can arrive from many cases, from owning a home to renting an apartment. Having fixed costs on your home is a good deal. Fixed costs just simply means that the price is locked in for that year or years to come based on the duration of the contract. Anytime you're dealing with fixed costs, you don't have to worry about your mortgage or rent changing every month. If you are trying to buy a home or rent, make sure that you're signing your contract with fixed costs details, otherwise you'll be facing an unexpected mortgage or rent every month.
Posted by Camitta D. on 8/30/2009
What others are suggesting
|
Fixed cost - Wikipedia, the free encyclopedia
|
|
fixed cost is ... ... total cost - In accounting, the sum of fixed costs, variable costs, and semi-variable costs. ... fixed cost in the news...
|
|
Suppose Alex's shoe store has $500 in fixed costs that must be paid every week. Alex sold 100 pairs of shoes at an average price of $50 last week. His store took in $5,000 ($50 x 100 pairs sold =$5,000). Alex's fixed costs equaled 10 percent of his income ($500 fixed costs divided by $5,000 sales = 10 percent).
|
|
Operating Leverage Captures Relationships - Find out how fixed and variable costs interact to shed new light on old companies. ... Investopedia explains Fixed Cost; A good example is a lease payment. If you are leasing a building at $2,000 per month, then you will pay that amount each month, no matter how well or how...
|
|
A high level of fixed costs increases operational gearing. ... Fixed costs are those that do not change with the level of sales. If sales increase or decrease but nothing else changes then fixed costs remain the same. Common examples of fixed costs include rents, salaries of permanent employees and depreciation.
|
|
Fixed costs are the costs of the investment goods used by the firm, on the idea that these reflect a long-term commitment that can be recovered only by wearing them out in the production of goods and services for sale.
|
|
Fixed Costs divided by (Revenue per unit - Variable costs per unit) ... Fixed costs are costs that must be paid whether or not any units are produced. These costs are "fixed" over a specified period of time or range of production.
|
|
Sourcing Decision Support, Inc calculating Fixed and Variable Costs from Quotations...Do fixed and variable costs seem to be reasonable? Can they be explained?
|
|
While, in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short-term cost accounting. Firms with high fixed costs are significantly different from those with high variable costs.
|
Can't find what you're looking for? Suggest a link.
Copyright © 2009, Dictionary.com, LLC. All rights reserved.
Related Topics for
Fixed Costs
Definition of
This binocular preview is a sneak peek of the Web page behind this search result. If the image says "Site Home Page" we are showing you a preview of the website's home page because we still have to update our binocular system with the particular page from your search result. The text at the bottom of the preview gives you more details, such as:
- Whether the page requires plug-ins such as Flash
- Whether the page will "pop up" additional windows upon loading
- How much data you'll have to download to view the complete page
- How long it should take for you to download the full page, based on a 56 kb/s dial-up Internet connection
