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What is Fixed Cost Break in Supply Chain Management? PDF | Download eBooks

Learn Fixed Cost Break definition in supply chain management with explanation to study “What is Fixed Cost Break”. Study fixed cost break explanation with SCM terms to review supply chain management course for online MBA programs.

Fixed Cost Break Definition

  • Volumes of output at which it is necessary to invest in operations facilities that bear a fixed cost.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston

Fixed Cost Break Explanation

A fixed expense is a cost that does not change with an expansion or lessening in the measure of merchandise or administrations created or sold. Fixed expenses will be costs that must be paid by an organization, free of a particular business exercises. By and large, organizations can have two kinds of costs, fixed expenses or variable costs, which together bring about their complete expenses. Organizations have some adaptability in separating costs on their budget summaries. Thus fixed expenses can be allotted all through the salary proclamation. The extent of variable versus fixed costs an organization brings about and their assignments can rely upon the business they are in. Variable expenses are costs legitimately connected with generation and along these lines change contingent upon business yield. Fixed expenses, be that as it may, can diminish on a for each unit premise when they are related with the immediate cost part of the salary proclamation, fluctuating in the breakdown of expenses of merchandise sold.

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