Total fixed cost
This query is : Resolved
25 August 2012
HELLO!!!Firstly,please explain the difference between TOTAL FIXED COST AND TOTAL VARIABLE COST in "DETAIL"...Secondly why doesn't TOTAL FIXED COST exist in the long run???Why does total fixed cost become total variable cost in long run???
-THANKING YOU IN ADVANCE!!!
-THANKING YOU IN ADVANCE!!!
25 August 2012
FIXED COST REMAIN FIXED IRRESPECTIVE OF THE LEVEL OF PRODUCTION..
BUT VARIABLE COST IS VARRY ON THE BASIS OF PRODUCTION...
BUT VARIABLE COST IS VARRY ON THE BASIS OF PRODUCTION...
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25 August 2012
Fixed Cost is Unavoidable That You cant Avoid In Any Case.
so Not a Relevant Cost.
and Variable All Depend on Production.
so Decision are Taken on Basis of Variable.
so Not a Relevant Cost.
and Variable All Depend on Production.
so Decision are Taken on Basis of Variable.
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26 August 2012
but why in the long run TFC doesn't exist?
26 August 2012
YES AGREE WITH AYUSH...
FIXED COST IS NOT RELEVENT COST FOR DECISION MAKING PURPOSE..
IT IS A UNAVOIDABLE COST....
FIXED COST IS NOT RELEVENT COST FOR DECISION MAKING PURPOSE..
IT IS A UNAVOIDABLE COST....
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