Saturday, February 7, 2015

Expenses that are not affected by sales volume are called?

Expenses that are not affected by sales volume are called?
Expenses that are not affected by sales volumes are called fixed costs. These costs remain constant regardless of the number of units produced or number of units sold. An example would be the lease on a building. Sales volume may fluctuate but lease payments typically remain constant (as outlined by the lease agreement).

No comments:

Post a Comment