FIXED CHARGE Definition

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FIXED CHARGE is those expenses incurred each time a batch of product is produced. Primarily consists of ordering cost for the raw material, engineering costs for machine setup and preparation for the production run, and work order processing cost; also known as SETUP COST.

Learn new Accounting Terms

UNIT-OF-DELIVERY METHOD see UNIT-OF-WORK-PERFORMED METHOD.

SALES INVOICE is a document that records the sale of goods or services from a vendor to a customer.

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