Examples of Fixed Cost

Fixed costs as the name suggests are those costs which remain fixed for a period of time. In simple words they are not dependent on the volume of output which the company will be producing; however they will change when the volume of output increases beyond certain limit. Given below are some of the examples of fixed cost –

  1. Salaries paid to employees
  2. Rent paid for warehouse or factory rent
  3. Insurance expense paid for building if it is owned by the company
  4. Depreciation on plant and machinery
  5. Office printing and stationary
  6. Office lighting and electricity related expenditure
  7. Telephone charges
  8. Bank and legal expense

Apart from above there can be many more items which can be included in the above depending on the industry and business in which company is operating.

 

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