Cryptocurrency Q&A
Which best describes fixed costs?
Which best describes fixed costs?
Lucia
Fri Sep 06 2024
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6 answers
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Could you please explain what is meant by the term "fixed costs" and provide an example to illustrate the concept? How do fixed costs differ from variable costs, and why are they important to consider in financial planning and decision-making? Additionally, how can businesses minimize or manage fixed costs to improve profitability?
6 answers
DondaejiDelightfulCharmingSmileJoy
Sun Sep 08 2024
Examples of fixed costs include rent, salaries for permanent employees, insurance premiums, and utility bills.
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Elena
Sun Sep 08 2024
The concept of fixed costs in business finance refers to expenses that remain constant and unaffected by the level of revenue generated.
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SsangyongSpirited
Sun Sep 08 2024
One key aspect of fixed costs is that they increase in a step function, meaning that they jump to a higher level when a significant change occurs, such as expanding operations or opening a new location.
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Margherita
Sun Sep 08 2024
These costs are recurrent and occur at predetermined intervals, whether it be weekly, monthly, or annually.
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DigitalDragonfly
Sun Sep 08 2024
Despite their predictability, fixed costs can pose challenges for businesses, as they must be covered even in periods of low revenue or profitability.
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