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Cost Descriptors Memo
Essay specific features
Written by:
Jennifer R
Date added:
December 13, 2011
Level:
University
Grade:
B
No of pages / words:
4 / 887
Was viewed:
983 times
Rating of current essay:
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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