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The terms, which will be included in this report, include fixed, variable, direct, indirect, sunk, marginal and total costs. This report will serve the purpose of giving the HR manager the knowledge and understanding necessary to run a business.
Fixed Cost
Fixed costs are costs, which do not vary or change depending on or according to sales and/or production levels in a firm (Block & Hirt, 2005). Examples of fixed costs include insurance, property tax, rent or interest expenses. A business owner or retailer has to pay utilities and rent no matter how much money they make in sales. The rent and utilities are fixed costs because they do not change whether the retailer has much or little profit or losses...
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