Fixed Costs

fixed cost  Fixed costs are costs that are not directly influenced by how much of a good or service is produced Learn more at Higher Rock Education Examples Of Fixed Costs · Amortization

Average fixed cost is the fixed cost per unit of output As the total number of units of the good produced increases, the average fixed cost decreases because Examples of fixed cost · Rent on premise · Cost of buying machines and factories · Salaries of managers and supervisors who are needed whatever the output

The difference between variable costs and fixed costs is that the former is intrinsically linked to the output of the company Variable costs rise and fall as Total fixed costs are the sum total of the producer's expenditures on the purchase of constant factors of production The factors of production include capital,