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Easiest way to explain this is;
Fixed costs are ones that do not vary with sales. For example, one of the fixed costs of a high street shop is the rent paid for the property. The rent is still the same whether the shop sells nothing or thousands of items.
Variable costs are ones that vary with sales. For example, a shop buys in Tins of beans for an average price of £0.25 each. It then resells the beans for a higher price (to make its profit). For the shop the variable cost is £0.25 per unit of beans.
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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.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Utilities is variable cost or fixed cost?
it is obviously variable
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Is freight in a variable of fixed cost?
Variable
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
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
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.
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
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Is freight in a variable of fixed cost?
Variable
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
Is administration a fixed or a variable cost?
Fixed
