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Essay

Describing Costs Within the Firm

Essay specific features

 

Issue:

Business

 

Written by:

Tommy J

 

Date added:

December 26, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 842

 

Was viewed:

938 times

 

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Essay content:

To the lay person these various costs may be confusing, but once explained are helpful in knowing how the company must allocate and account for all the costs listed. Fixed Costs Fixed costs are the costs that all companies must pay regardless of sales or production levels. Building payments, depreciation and taxes are just a few of the fixed costs that are common to all companies...
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It is easy to see why the term fixed cost is used. The costs are unmovable and must be paid each month or year without exception Variable Costs Opposite of fixed costs are variable costs. Variable costs fluctuate with the rate of business being performed. For example, if production drops from 100 units down to 20 units, then material cost drops to the 20 unit level...
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