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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.
A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for each alternative location are presented bel
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