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A fixed cost is a cost that will not change in total regardless of output. For example, no matter how much output you produce, rent expense is generally going to remain unchanged.
A sunk cost is a cost that has already been incurred, and thus shouldn't factor into management decisions. For example, if you were making a decision about whether to manufacture a material rather than buy it from an outside provider, you would only care about which costs would change as a result of the decision. Any costs that would be the same regardless of whether you make or buy would be considered sunk costs.
Wiki User
∙ 11y ago
Wiki User
∙ 9y agoFixed cost is that cost which remains fixed and don't vary with change in production level while sunk cost is that cost which is incurred in past and will not be affected with any decision in future.
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What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
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.
How do you calculate your variable cost and fixed cost given total costs and sales volumes?
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
Varable cost and fixed cost
What is the difference between escapable and unavoidable cost?
Avoidable or escapable costs are those costs which can be avoided by stop doing or start doing any particular activity and unavoidable costs are those costs which cannot be avoidable whether activity is done or not.For Example all variable costs are avoidable costs and fixed costs are unavoidable costs but this is general criteria to explain but not always all fixed costs are unavoidable.
What is cost What is the difference between total cost and average cost?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
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 is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Is total cost equals semi variable cost?
No. Total cost includes fixed costs, too. Even Semi Variable costs include Fixed costs...??? So whats the difference?
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.
Difference between avoidable cost and unavidable cost?
Avoidable Cost = These are those costs which can be avoidable by doing or not doing any particular activity For Example :Direct CostsUnavoidable Costs = These are those costs which are not avoidable whether do or donot initiate any activity For example: Fixed CostBut sometimes fixed costs are also avoidable or unavoidable by doing or not doing any activity in these cases fixed costs are also avoidable costs.
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 prime cost and overhead cost?
Prime cost is the cost of materials and labor involved in production of a commodity, excluding fixed costs. Overhead cost is the cost of on-going expenses, such as rent, utilities, and insurance. Overhead costs are one of the major factors in determining how a company charges for its service or product.
What is the difference between overhead and GA?
The difference between Overhead & G&A is as follows: Overhead is always a fixed cost...such as rent. G&A (Stands for General and Administrative) so therefore all general and administrative costs go here....such a supervisor salary. G&A can have cost controls implemented into them...the fixed costs are set (usually in stone). http://www.xsellence.com
How do you calculate your variable cost and fixed cost given total costs and sales volumes?
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - 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.
What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
