Identifying Fixed Expenses
If you must have a minimum number of employees to keep the sales office or the production line running, their pay may be a fixed cost. If you pay someone a mix of fixed salary plus commission, then they represent both fixed and variable costs. Busine...
What are the major components of manufacturing costs?
Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing its variable and fixed costs. In this example, the total production costs are $900 per month in fixed expenses plus $10 in varia...
Is depreciation a fixed cost or variable cost?
The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output. The total expenses incurred by any business consist of fixed costs and variable costs. Fixed costs are expenses that remain the same regardle...