Understanding Fixed & Variable Costs for Your Business

The fixed cost per unit is the total amount of FCs incurred by a company divided by the total number of units produced Fixed Cost Per Unit =

When fixed costs are allocated to a specific department or product line, the allocated portion directly reduces the gross profit For example,

variable cost Some examples of fixed costs are; · Rent: You may have a physical business office, a shop, or a cafe for which you will be paying rent unless it

กระเป๋าlacoste FIXED COST definition: a cost unvarying with a change in the volume of business ( distinguished from variable