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    ericvine's Avatar
    ericvine Posts: 1, Reputation: 1
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    #1

    Jan 11, 2011, 03:39 PM
    variable cost
    is rent on a facility a variable cost
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 12, 2011, 04:16 PM

    Rent is a fixed cost because the cost stays the same no matter what your activity level is. A variable cost is a cost that changes as the quantity changes. For example if you make 100 items your materials cost will be one amount, but if you make 1,000 items then your materials cost will be a different amount.

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