Introduction
This article explains how the time frame for calculating fixed costs is structured and why it relates exclusively to the current month. This concept is important to ensure a precise and comprehensible presentation of the costs incurred. At the same time, an example is used to illustrate how the monthly fixed costs relate to the current period and are calculated.
Time Frame
Fixed costs are always calculated for the period up to and including the current month. Unlike a full-year calculation, which could potentially provide inaccurate or misleading results, this method is based on the actual course of the year. It therefore provides a clear and up-to-date overview of costs.
A practical example illustrates this calculation method:
Let's look at the month of October. Here, the total amount of fixed costs is calculated as follows:
10 * X (monthly fixed costs)
In this case, the monthly fixed cost installment X is multiplied by the number of completed months in the year (up to and including October). This ensures that the presentation of the fixed costs always remains up to date and reflects the actual period.
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