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based on predicted production of 48,000 units, a company budgets $600,000 of fixed costs and $492,000 of variable costs. if the company actually produces 40,000 units, the flexible budget amount of fixed costs is $600,000.

Sagot :

Fixed cost that will remain same as $600000 because it does not change even after the increase or decrease of the goods.

Fixed cost is the cost of a business expense that doesn't change even when there's an increase or decrease in the number of goods and services produced or sold. Fixed costs are commonly related to recurring expenses that aren't directly related to production such as rent, interest payments, and insurance. Fixed costs remain the same irrespective of the level of output. Thus the fixed cost in the flexible budget would remain the same as in the static budget. Thus the fixed costs would be $600,000. it will not change.

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