FIXED AND VARIABLE COST

Fixed and Variable Cost



Fixed and Variable Cost

Introduction

Fixed Costs: are all those costs that do not vary with the quantity produced. This means that you must bear these independent costs from what you produce, and if you produce zero units of your product / service, it must support the same fixed costs. Variable Costs: are all those costs that vary with the amount you produce. This means that if you produce zero units of your product, your variable costs are zero, and only claim the fixed costs .

Flexible Budgets

Flexible budgets reflect on two types of ...