What is a fixed cost?

fixed cost  Average Fixed Cost : It refers to fixed cost per unit of output it is found out by dividing the total fixed cost by the corresponding output  Fixed costs are allocated to the indirect expense section of the income statement that leads to operating profit Two of the common fixed costs which are

The average fixed cost is the fixed cost of producing a single unit It can be arrived at by dividing the total fixed cost by the number of units produced The We can show fixed costs on the production costs graph of a firm This graph is plotted with cost on the vertical axis and quantity of output on the horizontal

In a nutshell, the average fixed cost is the fixed cost per unit of a company, calculated by dividing its total fixed cost burden by the total unit output  A fixed cost is a business expense that is constant, regardless of the demand for a product Fixed costs are expenses that companies pay to do