Costs a company has to pay, such as loans, mortgages, and taxes, whether or not it is operating, are called

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Nathaniel Hogan

Business

28 January, 05:02

Costs a company has to pay, such as loans, mortgages, and taxes, whether or not it is operating, are called

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Truffles · Answer 1

The costs that companies pay like loans, mortgages and taxes are fixed costs. Fixed costs are costs that are charged to a business, weather it is operating or not, and they do not change no matter how much the products increase or decrease. These are just expenses companies have to pay that are completely separate from any business activity.

Dodson · Answer 2

Costs a company has to pay, such as loans, mortgages, and taxes, whether or not it is operating, are called "fixed costs".

A fixed cost refers to a cost that does not change over the sort term, regardless of whether a business encounters changes in its business volume or other movement levels. This kind of cost has a tendency to rather be related with a time frame, for example, a lease installment in return for a month of occupancy, or a compensation installment in return for two weeks of administrations by a worker.