{"id":1027,"date":"2021-04-27T17:13:55","date_gmt":"2021-04-27T17:13:55","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/fixed-costs\/"},"modified":"2021-04-27T17:13:55","modified_gmt":"2021-04-27T17:13:55","slug":"fixed-costs","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/fixed-costs\/","title":{"rendered":"Fixed costs"},"content":{"rendered":"
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What are fixed costs?<\/h2>\n

Costs or fixed costs are those costs that an organization must always pay, regardless of its level of production.<\/strong> They are known as fixed because they do not vary with changes in the production of goods and services.<\/p>\n

In other words, fixed costs are those that no matter how much is produced, they must always be paid.<\/strong> For example, the rent of an office or a premises, salaries, telephone and internet services, payment of insurance, etc.<\/p>\n

Unlike variable costs, fixed costs do not depend on the level of units produced, <\/strong>so they are always constant.<\/p>\n

\"Fixed<\/p>\n

Fixed costs graph.<\/p>\n<\/div>\n

Types of fixed costs<\/h2>\n

Fixed costs can be discretionary or committed.<\/p>\n

    \n
  • Discretionary<\/strong>: those that can be reduced without changing the production of the organization, such as advertising or rentals. Organizations tend to be more flexible about these.<\/li>\n
  • Committed<\/strong>: those that are not prone to modifications, since otherwise the production would be affected. For example, professional salaries, insurance, taxes, etc.<\/li>\n<\/ul>\n

    Examples of fixed costs<\/h2>\n

    To better understand this concept, let's look at some examples of fixed costs:<\/p>\n

      \n
    • The payment of rental of a premises, warehouse or office<\/strong>, which must be done in a timely manner, is a fixed cost. Prior to this, a contract is drawn up in which the price is established, which must be canceled in the time indicated in the contract.<\/li>\n
    • Payments for insurance<\/strong> in the event of claims, whether they occur or not.<\/li>\n
    • Payments for services telephony, internet, water, electricity<\/strong>, etc.<\/li>\n
    • Payments for personnel services for labor.<\/li>\n
    • Municipal permits and licenses are also fixed costs.<\/li>\n<\/ul>\n<\/div>\n\n\n
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      What are fixed costs? Costs or fixed costs are those costs that…<\/p>\n","protected":false},"author":1,"featured_media":1028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1027"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1028"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}