COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Expenses are profits that change based on the amount of goods or services a business buy. Essentially, they are always tied to the amount of product or service being sold
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Fixed Expenses are expenses that isn’t affected by the number of items a business produces. The business will incur fixed expenses no matter how many products it sells.
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Fixed Expenses are expenses that change based on the amount of goods or services a business sells. Essentially, they are always tied to the amount of product or service being sold
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Detailed explanation-1: -Answer and Explanation: The correct option is c. The fixed cost per unit decreases when volume increases.
Detailed explanation-2: -Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. 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.
Detailed explanation-3: -Fixed expenses: These are costs that largely remain constant, such as your monthly rent or mortgage. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.
Detailed explanation-4: -Marginal cost curve is not affected by the fixed cost.