Fixed Cost

Cost Accounting

MS: Kos Tetap · EN: Fixed Cost · ZH: 固定成本

Meaning

Fixed cost is a cost whose total amount remains the same even when the level of production or sales changes within a certain range. Examples are rent and fixed salaries. Although the total is constant, fixed cost per unit falls as the number of units produced increases.

Example

Manis Cake Shop pays rent of RM3,000 a month whether it makes 100 or 500 cakes. This rent is a fixed cost because the total does not change with the level of output.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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