Discuss the concept of fixed costs. How are they different from variable costs?
What will be an ideal response?
Fixed costs are "fixed" because they do not fluctuate or vary in relation to sales. Rent, for example, is a fixed cost, and rent expense will likely increase over time. However, rent will not increase as a function of sales.
Variable costs such as insurance, on the other hand, fluctuate with sales.
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Answer the following statements true (T) or false (F)
Financial accounting standard setting in New Zealand has remained within the private sector.
Direct selling, direct marketing, and vending machines are all examples of
A. producing. B. advertising. C. promoting. D. retailing. E. wholesaling.
Grain Mills Corporation is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 14(a) of the act regulates
A. the declaration of dividends by the firm’s board of directors. B. the later re-registration of the firm’s securities. C. the short-swing activities of the firm’s insiders. D. the solicitation of proxies from the firm’s shareholders.
T1 lines
A) operate over existing telephone lines to carry voice, data, and video. B) operate over coaxial lines to deliver Internet access. C) do not provide guaranteed service levels, but simply "best effort." D) have up to twenty-four 64-Kbps channels. E) are high-speed, leased data lines providing guaranteed service levels.