CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 11 June 2011
sir fixed costs r those which r to be incurred even in case of no activity of the business is going. like we have to pay rent of rupees 5000 per month , if we r not doing any business activity even in this case we have to bear it. other examples r muncipal taxes, etc.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 11 June 2011
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 11 June 2011
Dear sir,
If you have to contiune your business even in the no profit situation then you have to atleast recovered your fixed cost
so that you would not beared loss I.E. u have to produced at BEP( Break even point) level
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 12 June 2011
CAclubindia
