If the production produced is high
Mar 12, 2024 5:01:34 GMT
Post by mimjannatmh on Mar 12, 2024 5:01:34 GMT
Costs will certainly decrease and vice versa. There are two types of fixed costs which refer to the meaning explained previously. The first type is costs that have been determined or what can also be called committed fixed costs. These costs are costs incurred in maintaining the stability of the company itself. This is closely related to the organizational structure and investment in company facilities.
Also read: Getting to know Fixed Costs and the Differences from Variable Costs accounting calculator fixed cost illustration. source envato When a company goes out of business, there are costs that must Panama mobile number list be incurred. Then the second type is discretionary costs or discretionary fixed costs. These costs are expenses that are only reduced or eliminated at certain times without having an impact on the profits generated.
This forces management to reduce discretionary costs when the company is hit by a short-term cash shortage. An example of this case could be someone who owns a photocopying business and sells office stationery. The salary costs that business owners have to pay to pay employees every month are IDR. , . Even though the shop is busy or quiet, the business owner still has to pay these costs without any deduction. There is one more example, still using the same example, namely someone who has a photocopying business and sells office stationery.
Also read: Getting to know Fixed Costs and the Differences from Variable Costs accounting calculator fixed cost illustration. source envato When a company goes out of business, there are costs that must Panama mobile number list be incurred. Then the second type is discretionary costs or discretionary fixed costs. These costs are expenses that are only reduced or eliminated at certain times without having an impact on the profits generated.
This forces management to reduce discretionary costs when the company is hit by a short-term cash shortage. An example of this case could be someone who owns a photocopying business and sells office stationery. The salary costs that business owners have to pay to pay employees every month are IDR. , . Even though the shop is busy or quiet, the business owner still has to pay these costs without any deduction. There is one more example, still using the same example, namely someone who has a photocopying business and sells office stationery.