Don’t Believe the Fixed Cost Lie
Everyone loves to quote fixed costs when trying to get investors to invest or when trying to predict potential profitability. That’s because fixed costs seem nice and predictable. Since they aren’t impacted by customer fluctuations, they make for easy calculation. Unfortunately, many costs that we called “fixed” aren’t actually fixed.
Tags: Accounting, Accuracy, Bookkeeping, Cost Of Living, Currency Fluctuation, Economic Assumptions, Fixed Cost, Fluctuations, Inflation, Investors, Mongolia, Office Space, Period Of Time, Profitability, Quote, Staff Increases, Staff Salaries, Telephones
