Fixed costs are those which are fixed for the production period. Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.
Is power a fixed cost?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. Some utilities, such as electricity, may increase when production goes up. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.
What are 3 examples of fixed costs?
Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Is power variable or fixed cost?
A "fixed price" energy tariff means that your unit price for gas and electricity will not change for the duration of the plan. A variable rate means your energy price can vary during the plan.