ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed cost refers to the cost of a business expense that doesn’t change even with an increase or decrease in the number of goods and services produced or sold. Fixed costs are commonly related to recurring expenses not directly related to production, such as rent, interest payments, and insurance.

Detailed explanation-2: -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-3: -Fixed Expenses These are the expenses you have that don’t change month-to-month. Your mortgage or rent, car payment, and insurance are examples of fixed expenses.

Detailed explanation-4: -A fixed expense is a cost that’s typically constant. Fixed expenses are paid at regular intervals-often monthly. Some fixed expenses are what are known as “periodic fixed expenses.” These expenses are fixed and regular, but don’t occur monthly-they may occur quarterly or annually instead, for example.

Detailed explanation-5: -Fixed cost is a business expense that does not change regardless of the activity level of the business. Examples of fixed costs include rent, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.