□ Characteristics of fixed costs
The fixed cost has the following two characteristics: (1) The total fixed cost (represented by a) remains unchanged; (2) The unit fixed cost (expressed by a /x) is inversely variable.
On the plane rectangular coordinate system, the fixed cost line is a straight line parallel to the X axis, and its total cost model is:
y =a
(Animation demonstration)
As the total amount of fixed costs remains unchanged, the fixed costs borne by unit products will inevitably change inversely with the change of business volume, which is reflected in an inverse ratio curve on the coordinate diagram, and its unit cost model is:
y =a / x
Items that can be regarded as fixed costs include: office expenses, travel expenses, depreciation expenses, labor protection expenses, managers' salaries, rental expenses and other expenses that are included in manufacturing expenses and do not change with output; Salaries, advertising fees and depreciation expenses of sales personnel not affected by sales volume; Wages, depreciation, lease, insurance and land use tax of enterprise managers who are not affected by output or sales.