what is fixed cost ? What is the difference between fixed cost and variable cost?
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what is fixed cost ? What is the difference between fixed cost and variable cost?
What is this ? Just I want to know about this question answer?:)
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.
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