Cost Descriptors Memo

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Issue:

Business

 

Written by:

Jennifer R

 

Date added:

December 13, 2011

 

Level:

University

 

Grade:

B

 

No of pages / words:

4 / 887

 

Was viewed:

983 times

 

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Essay content:

The terms of importance include, but are not limited to: fixed, variable, direct, indirect, sunk, marginal and total cost. Fixed Cost Fixed cost is a cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense (Investorwords, 2008). Fixed costs remain constant regardless of the company’s activities...
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Fixed costs remain constant regardless of the company’s activities. An example of one of our organization’s fixed cost is the building lease. If we lease our office building for $4500 per month, this will stay the same regardless of the financial performance of the company. Other examples of fixed costs include insurance and property taxes...
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