ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed costs are costs that are independent of volume. 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.

Detailed explanation-2: -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.

Detailed explanation-3: -Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

Detailed explanation-4: -What is Fixed Manufacturing Overhead Incurred? Fixed manufacturing overhead incurred is that component of factory overhead that does not vary with production volume. Examples of these costs are depreciation, the salaries of production managers, and insurance for the production facility.

Detailed explanation-5: -Fixed Costs. Fixed costs are expenses that remain the same regardless of production output. Whether a firm makes sales or not, it must pay its fixed costs, as these costs are independent of output. Examples of fixed costs are rent, employee salaries, insurance, and office supplies.