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Land,Labour,Physical Capital,Fixed Capital,Working Capital and Human Capital.
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
variable cost ignore the increasing importance of fixed cost in order to determine thecost of production.on computing the cost of production we basing on variable cost because variable cost change as productivity change that we eliminate the fixed cost to determine cost of production.
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
Breakeven point cannot be find out until sales revenue or selling price is not provided only the fixed and variable cost is not enough.
VARIABLE. When this variable has a fixed number assigned to it and does not change, it is called a "fixed variable".
difference between fixed and variable inputs
Variable
Variable
fixed capital
Fixed