Examples Of Fixed Costs

Name: Rajandeep Singh

Student id: 12000549 TASK-1

ANSWER 1.1

a. Direct costs- Price completely is directly due to the production of products or services. So direct costs are related costs associated with raw materials labor and manufacturing of this product. For example, direct costs to pay wages to workers at McDonald's as follows.

b. Indirect costs- Advertising, marketing and security cost of supervision and maintenance is an example of direct costs. An indirect cost is usually a year-round constant. For example, it is considered as an indirect cost as follows, to hire technicians to repair defects drink refrigerator

c. Fixed costs- Fixed costs need to spend the output or any of the profits of the money without the guarantee is a cost that does

Overhead costs- it will be billed to you directly, the direct labor costs, all on the progress of the project, whether its clients mean a material, contain but a third party is not related to the cost directly. To regardless, of how overhead costs of the company must continue to pay a good business.

e. Variable costs- Variable cost is the cost of the other output. With the increase in labor and Capitol generally variable costs increase. They wages you can include the consumables and utility buildings and repair. Does not have these costs it is necessary only in certain specific requirements

f. Product costs- Products have been used to generate a direct labor costs, direct materials, products and supply overhead production cost consumables. So that the product cost is required labor is considered to provide a service to customers.

g. Period- For example, to quantify the segments of such time, week, month, quarter, and is used to predict the activity of these companies or billing company. For example, the company 1000 vessel over a period of four months, the container is constant.

h. Break-even point- It is the point at which cost and incomes are equal and there is neither loss nor