Jj's hair salon pays overhead each month, including bills for rent, heat, interest, and salaries. these payments are examples of fixed costs.
When a cost is referred to as fixed cost, it means that it doesn't fluctuate based on how many products or services are produced or sold. Costs associated with a company's operations that must be covered regardless of the company's specific operations are known as fixed costs. Since they don't relate to the creation of any goods or services by a corporation, fixed expenses are therefore typically indirect costs. Typically, a company's overall expenditures are made up of two types of expenses: fixed and variable expenses. In order to lower fixed expenses, shutdown points are frequently used. Contractual clauses or schedules are typically used to establish them.
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