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Discuss the potential behavioural implications of performance evaluation.
Fixed Manufacturing Cost
Costs that do not change with the level of production, such as rent, salaries, and equipment depreciation.
Manufacturing Overhead
All manufacturing costs incurred during the production process that cannot be directly attributed to specific units produced, such as utilities, maintenance, and factory supplies.
Total Variable Cost
The total of variable costs involved in the production of goods or services, which change in proportion to the level of production or activity.
Total Fixed Cost
The sum of all costs required to produce any product or service, which remain unchanged regardless of the company's level of production or output.
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