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Type of costs

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 January 2012 please explain with reasons whether depreciation and rates & taxes are fixed costs?
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NILESH MANDOLE, MBA (Fin),CS

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NILESH MANDOLE, MBA (Fin),CS (Expert)
23 January 2012 These are not fixed costs : Depreciation is depend on your resedual value of asset which changes every year ( if addition is made of any part is sold). In case of Tax, the taxable amount is determined according to your profit/income for the year & profit/income changes every year so taxes can not be fixed. Even in case of Advance tax, its not fix.
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