BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs. Since you have to pay fixed costs regardless of how much you sell, you should be careful about adding fixed costs to your small business.

Detailed explanation-2: -Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one-or two-year contract between the lessor and lessee, with options to renew.

Detailed explanation-3: -A common example of a fixed cost is rent because rent stays constant regardless of the quantity of goods or services produced. Some other examples of fixed costs include: Lease payments. Rent or mortgage payments.

Detailed explanation-4: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Detailed explanation-5: -Some examples of fixed expenses include: Mortgage or rent payments.