Fixed Overheads


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Fixed Overheads

 

Fixed overheads is one which tends to be unaffected by variation in volume of output. This overhead remains constant, i.e., does not change with the increase or decrease in production, within a certain range. The fixed overheads are related to the periods, and so the fixed costs are also known as Period Costs, e.g., the rent of the building or the salaries of the office staff.

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