ENTREPRENEURSHIP

Detailed explanation-1: -Fixed costs include any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.

Detailed explanation-2: -Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed.

Detailed explanation-3: -Rent is an annual or monthly charge which is a fixed cost. A business has to pay this regardless of how many customers it serves. For example, a barber will have to pay rent whether they cut one persons hair or twenty people. This may increase in line with inflation, but is fixed for a set period of time.

Detailed explanation-4: -Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.