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MRP glossary TOP > Cost Control > Fixed Cost

Fixed Cost

Fixed Cost

It refers to the cost whose total expenses do not change for a certain period without directly relating to the production or sales amount of the product. Since it occurs as time passes, it is also called Period Cost. Furthermore, it may be called start-up cost or capacity cost as it necessarily happens to make preparations necessary for production and sales activities.

Reference:JIT Business Research Mr. Hirano Hiroyuki

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