Fixed costs


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Fixed costs (or overheads) are the expenses of a company that do not depend on its production. However, even if we speak of "fixed costs", it goes without saying that they are fixed only over a given period. Often, they evolve in stages. Fixed costs are often opposed to variable costs that depend directly on production.

Examples of fixed costs: Historyedit code

It can be seen that over time and in each area the fixed costs of production tend to increase (increased investments) and the variables to go down (because of this investment, which serves to increase productivity. are now so high in the development of products, such as an integrated circuit (Intel or AMD), a civil aircraft (Airbus or military (Dassault Rafale), a film or software that required investments may exceed a year turnover of the companies that undertake them.

See a well-known case of economists: Control Data Cyber ​​72. code Related Articleschange the code

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