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  2. What Is a Fixed Cost? - AOL

    www.aol.com/fixed-cost-194647372.html

    Here’s an example. The ABC Company makes widgets. The company has fixed costs of $10,000 per month. Each widget costs the company $3.00 to make, and it sells each widget for $5.00.

  3. Fixed cost - Wikipedia

    en.wikipedia.org/wiki/Fixed_cost

    Along with variable costs, fixed costs make up one of the two components of total cost: total cost is equal to fixed costs plus variable costs. In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They ...

  4. Overhead (business) - Wikipedia

    en.wikipedia.org/wiki/Overhead_(business)

    Such expenses are incurred for output generally and not for particular work order; e.g., wages paid to watch and ward staff, heating and lighting expenses of factory, etc. Overheads are an important cost element, alongside direct materials and direct labor. [2] Overheads are often related to accounting concepts such as fixed costs and indirect ...

  5. Average fixed cost - Wikipedia

    en.wikipedia.org/wiki/Average_fixed_cost

    Average fixed cost is the fixed cost per unit of output. As the total number of units of the good produced increases, the average fixed cost decreases because the same amount of fixed costs is being spread over a larger number of units of output. Average variable cost plus average fixed cost equals average total cost:

  6. Operating cost - Wikipedia

    en.wikipedia.org/wiki/Operating_cost

    Overhead costs for a business are the cost of resources used by an organization just to maintain its existence. Overhead costs are usually measured in monetary terms, but non-monetary overhead is possible in the form of time required to accomplish tasks. Examples of overhead costs include: payment of rent on the office space a business occupies

  7. Compensation and benefits - Wikipedia

    en.wikipedia.org/wiki/Compensation_and_benefits

    Total guaranteed package or fixed cost to company are aggregates that include guaranteed pay and benefits. This represents the total fixed cost of the reward package and is useful for budgeting. All forms of variable pay (annual bonus and equity compensation) are excluded from this aggregate.

  8. Variable cost - Wikipedia

    en.wikipedia.org/wiki/Variable_cost

    Variable costs are the sum of marginal costs over all units produced. They can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Direct costs are costs that can easily be associated with a particular cost object. [2] However, not all variable costs are direct costs.

  9. Cost of goods sold - Wikipedia

    en.wikipedia.org/wiki/Cost_of_goods_sold

    Direct labor costs are the wages paid to those employees who spend all their time working directly on the product being manufactured. Indirect labor costs are the wages paid to other factory employees involved in production. Costs of payroll taxes and fringe benefits are generally included in labor costs, but may be treated as overhead costs.

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