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What are the fixed and recurring costs of business? How to keep business going even if there are no profits?
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Cost of Business
Replies (4)
sir fixed costs r those which r to be incurred even in case of no activity of the business is going. like we have to pay rent of rupees 5000 per month , if we r not doing any business activity even in this case we have to bear it. other examples r muncipal taxes, etc.
on the other hand recurring costs r those which r according to the production. i.e. if one unit of the product have manufacturing cost of rupees 5 than it will be called reccuring cost
Dear sir,
If you have to contiune your business even in the no profit situation then you have to atleast recovered your fixed cost
so that you would not beared loss I.E. u have to produced at BEP( Break even point) level
yes sir if you r recovering all your fixed cost conveniently than the business could be continued
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