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Discussion > Students > IPCC >

Apportionment of fixed cost

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[ Scorecard : 37] 		Posted On 10 August 2012 at 22:43 Report Abuse

I WANT TO KNOW.... WHY FIXED COST IS ALWAYS APPORTIONED AT FULL CAPACITY??

CA Harish Chandra Sahoo
Internal Auditor

[ Scorecard : 66] 		Posted On 11 August 2012 at 00:03

Because fixed costs are based on utilized capacity. In detail fixed cost is depends on certain capacity say Rs.50000/- for 90 % capacity utilization. Beyond that it wil increase to 80000/-


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