0
A fixed cost is a cost (in the short-run) that does not change based on the production output in a business; i.e. no matter how many products a company makes/sells, these costs do not change. Examples include rent, salaries, and insurance.
A variable cost is a cost (in the short-run) that changes based on the amount of output in a business; i.e. the cost increases if the company makes/sells more products, and vice-versa. Examples include wages, cost of goods sold, and income tax.
Under classical economic theory, all costs are variable in the long-run.
Wiki User
∙ 13y ago
Wiki User
∙ 10y agoFixed cost is cost which remains fixed and don't have impact on change in level of production whle variable cost varies with level of production.
Add your answer:
Earn +20 pts
What determines the difference between a variable and a fixed cost?
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.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Utilities is variable cost or fixed cost?
it is obviously variable
Difference between semi variable costs and semi fixed costs?
a semi fixed cost moves upward in a step where semi variable cost begining at a given base level
What determines the difference between a variable and a fixed cost?
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.
Relationship between fixed cost and variable cost?
There is a huge relationship between fixed cost and variable cost. These two costs are the opposite of each other.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
What does the vertical distance between the fixed Cost and the total cost curve represent?
total variable cost
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
Is maintenance on production equipment a fixed variable or mixed cost?
fixed and variable
Production cost is which kind of cost variable or fixed cost?
variable
What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Utilities is variable cost or fixed cost?
it is obviously variable
Difference between semi variable costs and semi fixed costs?
a semi fixed cost moves upward in a step where semi variable cost begining at a given base level
