Fixed Vs. Variable Costs

nauecam · #1 Jun 11, 2007, 09:35 PM

What are they and what is the difference? Thanks!

My-Brain-Is-Full · Jun 16, 2007, 07:06 AM

Fixed costs are those costs that cannot be changed in the short-run e.g. rent, which is the same regardless of ouput of the business. These are sometimes called overheads.

Variable costs are those that can change in the short-run i.e. wages. These are sometimes called running costs.

Both of these definitions are subject to flaws in practice (though not in a textbook).



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!