Common fixed costs do not relate to any product in particular but to the entire business.

Question

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Common fixed costs are expenses that remain the same regardless of the level of production or sales of a particular product. They are incurred to keep the business running and are not directly related to any specific product or service. Examples of common fixed costs include rent, salaries of administrative staff, insurance, and property taxes.

Common Fixed Costs Do Not Relate to Any Product in Particular