If the number of people in a publishing company does not go up or down with the quantity of books it publishes, then how should we categorize the salaries and benefits paid to these employees?.

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02-11-2022
Business

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If the number of people in a publishing company does not go up or down with the quantity of books it publishes, then how should we categorize the salaries and benefits paid to these employees?.

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contexto1005 contexto1005 · Answer 1 · 2022-11-06T05:13:48-05:00

Salaries and benefits given to employees of a publishing business should be viewed as a part of fixed costs if the number of employees does not increase or decrease in proportion to the number of books the company publishes.

A fixed cost Is the cost of a business expense that doesn’t change whether more or fewer goods and services are produced or sold.Examples of fixed expenditures that aren’t directly related to production include rent, interest payments, and insurance.Since they have nothing to do with how a corporation produces its goods or provides its services, fixed costs are typically indirect costs.Shutdown points are frequently employed to reduce fixed expenses.

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