Finance Formulas / July 19, 2018 / Kenley Hopper
Total costs are made up of fixed costs, those costs that are required for production but do not change based on output, and variable costs, those costs that increase or decrease as output increases or decreases. For example, if an organization manufactures desktop computer screens, the glass screens, plastic casings, electrical boards and wires, and screws are all variable costs. The cost of the facility they are made in and the equipment used to assemble the monitors are fixed costs. It doesn't matter if one monitor is made or 100, the cost of the facility and equipment will remain fixed.
In return for your lump sum, the insurance company promises to make regular payments to you (or to a payee you specify) for the chosen length of time most commonly for the remainder of your life, however long that may be.
We Also Think You’ll Like