Fixed and Variable Costs

Fixed costs are expenses that remain the same no matter how much a company produces, such as rent, property tax, insurance, and depreciation

Production Planning: Fixed cost component cannot be zeroed and remains stable irrespective of output level Thus it is the fixed part of the

cost of goods sold Fixed costs are the costs incurred by a company on a regular basis, regardless of revenue generated or production, including rent and salaries

variable cost In businesses, fixed costs are essential components that remain constant regardless of production or sales volume The costs of certain factors won't fluctuate