Why total fixed cost be constant?

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1082271

2026-05-13 10:45

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Total fixed costs remain constant because they do not change with the level of production or sales. These costs, such as rent, salaries of permanent staff, and insurance, are incurred regardless of how much output a business produces. Since fixed costs are tied to long-term commitments and obligations, they remain the same over a specified period, providing stability in budgeting and financial planning.

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