Ask Experts Questions for FREE Help !
Ask
    willaskya's Avatar
    willaskya Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 4, 2008, 03:13 PM
    Fixed costs
    Is it true that in the long run fixed costs are always zero?
    proteas's Avatar
    proteas Posts: 26, Reputation: 3
    New Member
    		  
    #2

    Feb 9, 2009, 06:10 AM

    Not really. Take a manufacturing example where fixed costs are the cost of plant and machinery; they depreciate / lose efficiency and need to be replaced over time. Same is true for other industries.
    Johnny Knocker's Avatar
    Johnny Knocker Posts: 17, Reputation: 4
    New Member
    		  
    #3

    Feb 9, 2009, 01:03 PM

    They want you to believe that you take care of the fixed costs in the short run, so in almost any economics undergrad class (acct'ing too) they want you to base off that.
    Wuerschti's Avatar
    Wuerschti Posts: 30, Reputation: 1
    Junior Member
    		  
    #4

    Mar 18, 2009, 04:20 PM
    Fixed costs are incurred whether a company operates or not. Expenses that are always there.

    The only way fixed cost approaches zero is when the company goes out of business.

    Variable costs are expenses that change in proportion to the activity of a business... so that can reach zero every once in a while
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Fixed costs vs. Variable costs [ 1 Answers ]

Can someone please check my answers. -Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs you consider to be semivariable within the variable category) a. Indirect labor- fixed costs could be variable under certain circumstances b....

How do variable costs and fixed costs differ [ 4 Answers ]

How do variable and fixed costs differ?

Accounting Sales Price Variable Material Costs Fixed Monthly Costs [ 0 Answers ]

I have no clue where to begen with this, I could use some help! Its due on Friday night and the teacher as done nothing to help here. I'm totally lost. The individual portion of this assignment is for each person to produce his/her own solution to the following. Claire’s Antiques has fixed cost...

Step variable costs vs fixed costs [ 1 Answers ]

step variable costs vs fixed costs

Fixed costs vs. Variable costs [ 1 Answers ]

Which are which? Futon Factory Power to operate tools-variable Cloth to cover the futon frame-fixed Salary of factory receptionist-fixed Cost of food and dec for a work party-variable fuel for forklift-variable depreciation for factory-fixed depreciation for factory equipment-variable...

View more questions Search