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What is the meaning of fixed deposit account


Similarly, for business organizations, it is very important to classify the costs into fixed and variable costs.
That part is fixed cost, and the remaining which depends on the usage is variable cost.
Features of Fixed Deposit Account: Main purpose of fixed deposits is to provide higher interest on the surplus.
absorption costing, which is required for external financial statements, means that each product's cost includes direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.).
Fixed deposits are considered as a very good medium term financing instrument.Initially, huge fixed costs are incurred, hence any business will take time to recover it; however, comparison of cost and benefit makes it easy for the management to take such decisions.Fixed deposits work in a very simple way.For such situations we have a fixed deposit.A fixed deposit cherry odds bonus can be pokerstars reload bonus code 2017 opened at a bank or a financial institution or even in a company.Interest payments are applicable to tax deductions.Now, if you try to classify these expenses, you'll find that some expenses depend on use or consumption, while some remain independent of use or consumption.



Let's start with a household example.
Thus try to open up a FD in your bank branch as a medium term investment and reap its full benefits.
Cost accountants use this classification for analyzing budgetary constraints.
What is the fixed cost incurred?
For example, your phone expenses might be inclusive of some fixed cost element, irrespective of its use.For further deposits, separate fixed deposit accounts have to be opened.Fixed manufacturing overhead cost is usually applied to the products (and is absorbed by the products) through the use of a predetermined annual overhead rate that is based on some planned volume of production.Duration of a FD can be form 7 days to 10 years.They do not vary with the change in output or level of production.When the actual volume exceeds the planned volume and the costs are as planned, the fixed manufacturing overhead will be overabsorbed.Because the fixed manufacturing overhead costs are indirect product costs (not directly traceable to the products) the accountant allocates (or assigns or applies) these costs to the products on some basisperhaps on the basis of machine hours or through activity-based costing.In order to open a fixed deposit, one needs to fill up the form and submitting the documents.Three examples of fixed manufacturing overhead costs include 1) depreciation of the manufacturing equipment, 2) the property tax on the factory building, and 3) the salaries of the factory supervisors.


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