Indian Economy Questions

An excise or excise tax or excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production of a good. This tax is now known as the Central Value Added Tax (CENVAT).

Capital refers to buildings and equipment i.e, goods which are used by workers to produce other goods such as machinery, land, ...

Capital has a number of related meanings in economics, finance, and accounting.

In economics, Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.

In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business.

Direct Materials doesn't come under Fixed Cost because it vary with changes in the activity level of a business.

Fixed Cost :

A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels.

It is of some importance to understand the extent and nature of the fixed costs in a business, since a high fixed-cost level requires a business to maintain a high revenue level in order to avoid generating losses.

Examples of Fixed Cost are:

Insurance, Salaries, Rent, Property Taxes,...