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Gas prices are typically considered a variable cost rather than a fixed cost, as they fluctuate based on market conditions, supply and demand, and geopolitical factors. However, in certain contexts, such as long-term contracts or budgets where a business can predict and lock in gas prices for a specific period, they may be treated as fixed costs. In general, fixed costs are expenses that do not change with the level of production or service, while variable costs vary directly with operational levels. Therefore, while gas can sometimes be planned for, it is inherently variable in nature.

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1mo ago

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