Cost Accounting Question:

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Define fixed cost?

Cost Accounting Interview Question
Cost Accounting Interview Question

Answer:

A fixed cost is one that does not change in total within a reasonable range of activity. For example, the rent for a production facility is a fixed cost if the rent will not change when there are reasonable changes in the amount of output or input. If there is a need to double the output the rent will change when the company occupies additional work space.

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Define independent variable?What happend when a fixed cost remains constant in total?