ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Fixed costs are those costs that a company should bear irrespective of the levels of production.

Detailed explanation-2: -Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service. As a result, fixed costs are considered to be indirect costs.

Detailed explanation-3: -In economics, production costs involve a number of costs that include both fixed and variable costs. Fixed costs are costs that do not change when output changes. Examples include insurance, rent, normal profit, setup costs and depreciation.

Detailed explanation-4: -Fixed costs are associated with the basic operating and overhead costs of a business. Fixed costs are considered indirect costs of production, which means that they are not costs incurred directly by the production process, such as parts needed for assembly.

Detailed explanation-5: -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.