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Explain Fixed Cost.
Fixed Cost:
Cost may be described as the amount of expenditure incurred on, or attributable to a specified thing. Fixed costs are those costs that tend to keep on constant irrespective of the volume of sales or output.
Illustrations of fixed costs:
* Staff salaries.
* Administration Expenses.
* Rent and establishment charges
* Depreciation.
The expected average rate of return for a proposed investment of $500,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an e
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