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Factory insurance is considered a fixed cost within a monthly or annual budget. When putting together a budget that goes longer than one year factory insurance would not be considered a fixed cost.
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∙ 10y ago
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Is insurance on factory building a fixed cost?
The cost of insurance premia on factory building is recurring expenditure and to be shown on the lefthand side of the Profit & Loss A/c of the company. This not at all a fixed cost.
Would insurance on a factory assembly facility be a fixed cost?
Yes
Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed cost
What does factory insurance cost?
it cost nothing
What are examples of fixed and variable cost factory?
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
Is depreciation on factory machinery fixed cost?
Yes
Is indirect materials factory a fixed or variable cost?
no
Is insurance premium a fixed cost or variable cost?
Yes It is fixed. No matter how much your volume of activity or production you are obliged to pay insurance premium as agreed.
Which is most clearly a fixed cost?
insurance premium
What is the meaning of fixed cost in economics?
the cost which is not change with production fixed cost example rent of factory , employee salaries in case of manufacturing unit , fixed electricity charge etc.
Is factory labor fixed cost?
It depends with the nature of labour in factory, if the labor is on daily basis or for specific number of units produced then it is variable cost but if labor has no connection with the volume of production of units then it is fixed cost as they have to pay no matter production is done or not.
Examples of variable cost and fixed cost?
Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.
