PDA

View Full Version : What is fixed cost ?


sumonahemed
Jun 29, 2010, 10:28 AM
what is fixed cost ? What is the difference between fixed cost and variable cost?

sumonahemed
Jun 29, 2010, 10:32 AM
What is this ? Just I want to know about this question answer?:)

pready
Jun 30, 2010, 08:41 AM
A fixed cost is a cost like rent that stays the same during an acocunting period. It will not change based on production. Rent will not change if you operate a plant or not.

A variable cost is a ccost that does change like material and labor during a period. If you produce 1 item you pay a certain amount for labor and material, but if you produce 2 items then your cost will change, based on production.