Fixed costs, Cost Accounting

Fixed Costs

Are costs such do not change along with of the level of output? It is also named as autonomous cost, as it stays the similar irrespective of the activity level as displayed Below:

2103_Fixed Costs.png

The classification of cost into variable and fixed costs would merely hold in a relevant range beyond that all costs are variable. The relevant/related range is the activity limits in that the cost behaviour can be predicted.

Posted Date: 2/5/2013 3:05:18 AM | Location : United States







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What are the importance of cost classification

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