Describe committed fixed costs, Managerial Accounting

Assignment Help:

Describe Committed fixed costs

Committed fixed costs are those fixed costs that arise from the possession of

1. Plant, building and equipment (for example, depreciation, rent, taxes, insurance premium etc.) or

2. A basic organization (for example salaries of staff). These costs remain unaffected by any short term changes in the volume of production. Any reduction in committed fixed costs under normal activities of the concern would have adverse on the concern’s long term objectives. Such costs cannot be controlled.


Related Discussions:- Describe committed fixed costs

TOTAL PRODUCTIVE MAINTENANCE, Identify the ways in which Total Productive M...

Identify the ways in which Total Productive Maintenance could be applied as part of a manufacturing organisation''s quality programme

What specifically caused your emotional response?, What story or character ...

What story or character in a story generated what Aristotle calls a "catharsis?" Describe your emotional response. What specifically caused your emotional response?

Determine the objectives of ratio analysis, Objectives of ratio analysis ...

Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.

Pricing over the life cycle of a product, Q. Pricing over the life cycle of...

Q. Pricing over the life cycle of a product? The cycle begins with the invention of the new product. The innovation of a new product and its degeneration to a common product is

Operating cycle method, Operating Cycle Method In this way, total opera...

Operating Cycle Method In this way, total operating expenses for a period are divided via the number of operating cycles in the relevant period to compute the cash need for wor

Budgetary styles, their definitions and the advantages and disadvantages

their definitions and the advantages and disadvantages

Procedure of material acquisition, Procedure of material acquisition A ...

Procedure of material acquisition A stores record is maintained into which the quantity and value of materials received is entered. Issues of materials to production are made b

Funds generated from operations, Funds produced from operations, throughout...

Funds produced from operations, throughout an accounting period, raise working capital by an equivalent amount. The two major components of funds generated from operations are depr

Jit purchasing-jit aims, JIT purchasing On the other hand is a purchasi...

JIT purchasing On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd