Difference between revisions of "Fixed costs"
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| − | Fixed costs are costs that do not vary based on the amount of production or output. In other words, these costs exist regardless of whether a company is in full production or shut down. Fixed costs include rent, property taxes and debt. Costs, that depend on the amount of output are [[variable costs]]. | + | Fixed costs are costs that do not vary based on the amount of production or output. In other words, these costs exist regardless of whether a company is in full production or shut down. Fixed costs include rent, property taxes and debt. Costs, that depend on the amount of output, are [[variable costs]]. |
[[category:economics]] | [[category:economics]] | ||
Revision as of 21:17, May 23, 2007
Fixed costs are costs that do not vary based on the amount of production or output. In other words, these costs exist regardless of whether a company is in full production or shut down. Fixed costs include rent, property taxes and debt. Costs, that depend on the amount of output, are variable costs.