Wednesday, May 25, 2016

144. COSTS - Fixed & Variable

Fixed costs, as its name suggests, is fixed in total i.e. irrespective of the number of output produced – for example the rent on a factory paid in advance. Fixed costs can become variable over the long term.

Variable costs, varies with the number of output produced. For example the electricity used to produce items or materials used.( difference-between-fixed-cost-and-variable-cost.html)

No comments:

Post a Comment