A firm will start generating positive accounting profits the point at which revenues exceed total fixed costs.
The cost of a company expense is said to as a fixed cost if it remains constant regardless of whether more or fewer goods and services are produced or sold.
It's common practice to reduce fixed expenses by using shutdown points.
Fixed costs are frequently associated with ongoing costs like rent, interest payments, and insurance that aren't directly tied to productivity.
In general, fixed expenses are indirect because they have nothing to do with the creation of any goods or services by a corporation.
These expenses are one of two different business expenses, the other being variable expenses, which combined make up their overall expenses.
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