Fixed Cost: Explanation, Formula, Calculation, and Examples
Fixed cost is a type of cost that does not change with an increase or reduction in production quantity. The company has to pay the fixed cost despite the number of units produced.
Rusith Yapabandara is contributing as the key author for LearnBusinessConcepts. He has over eight years of corporate experience in multinational companies and has several years of academic consulting experience.
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Fixed cost is a type of cost that does not change with an increase or reduction in production quantity. The company has to pay the fixed cost despite the number of units produced.
Imagine you are waking up in the morning, as the first thing you notice is a healthy bank balance that increased last night while you are sleeping. Sounds amazing right? This is completely doable with the ideas presented in this article.
Diseconomies of scale are which the company experiences an increase in average unit cost when the production output increases.
The Societal Marketing Concept states that corporates should offer products and services which satisfy the needs of their consumers, company requirements and maintains the well-being of the society at large.
Horizontal Integration is where two companies in the same industry merge together.
Forward integration is a strategy where the company gains control of the business activities that are ahead in the value chain.
Backward integration is a strategy where the company gains control of the business activities that were behind in their value chain.
Differences between Forward Integration and Backward Integration
Vertical integration is where the company obtains the ownership and control of more than one stage of the supply chain.
The new share price after the right issue is known as the theoretical ex-rights price (also known as ex-right price or TERP).