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capital is a fixed cost
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∙ 12y ago
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Is bullock cart a fixed capital or working capital?
fixed capital
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed cost
Is the cost of a building a fixed asset?
Capital Expenditure.
Is bullock cart a fixed capital or working capital?
fixed capital
What is capital expenditure?
It is an expenditure in order to upgread or capitalize the fixed asset .this can be expressed either by extending the future expected life or by capitalizing the fixed asset cost.
Can you identify the fixed and working capital in the case of a selected business?
what is the fixed and working capital of a bakery
What are the 2 types of capital?
fixed capital : capital invested in the fixed assets of the business. such as buildings,machinery working capital: capital invested in the running of the business expenses and activities
Which capital is known as physical capital?
Fixed capital is known as Physical capital
Is bullock cart fixed or working capital?
Fixed
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Advantages of fixed position layout?
minimize capital investment.Continuity of operation is ensured.Less total production cost less material movement
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
