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Fixed Costs

Fixed costs are essential business expenses that do not vary with production or sales volume, such as rent, salaries, and insurance. E-commerce sellers must manage fixed costs effectively to maintain profitability.

Fixed costs are business expenses that do not change with the volume of production or sales. These are the costs that a business must pay regardless of how much they sell. Some common examples of fixed costs for a business

Author
Published
November 8, 2024
Updated
November 8, 2024

Frequently Asked Questions

Depreciation is not considered a fixed cost because it is a non-cash expense that represents the decrease in value of an asset over time. However, it can affect a company's profitability and cash flow. Therefore, it is an important factor to consider in financial planning.

Fixed common costs are fixed costs that are shared among multiple products or services. They cannot be attributed to a specific product or service but rather are incurred for the overall benefit of the business.