Costs that do not change with the change in the level of production for some time is classified as fixed costs.
The term fixed cost refers to a cost which does not change with any increase or decrease in the number of goods or services produced or sold by the company.
Fixed costs are those expenses which have to be paid by a company, independent of any specific business activities. It simply means that fixed costs are generally indirect. It means in this expenses don't apply to a company's production of any goods or services.
Companies can have two types of costs , fixed or variable costs, which together makes their total costs. Shutdown points are applied to reduce fixed costs at a greater extent.
Fixed costs refer to those expenses that a company must pay at any cost.
These costs are fixed over a specified period of time and do not change with production levels or any other level of activity/.
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