Difference between Fixed Cost and Variable Cost

Variable cost variable cost

Examples of variable costs include raw materials, direct labour, and utilities On the other hand, fixed costs remain constant regardless of production or sales

variable cost A business's variable costs decrease and increase with its production volume When production volume goes up, then the variable costs will increase On the Semi-variable costs are less common than fixed and variable costs, and will differ from industry to industry Nevertheless, typical semi-variable costs include Uses Contribution Margin Income Statement showing Sales – VARIABLE expenses = Contribution Margin

lynking88 Variable costs are expenses that change in proportion to the production output or the level of business activity