Accounting MascotAccounting Q&A

What are fixed costs and variable costs?
submitted by Ophelia Payne

Adnan Khan

Fixed cost:It is that cost which remains fixed throughout the production process, regardless of level of production. Variable cost:It is that cost which varies with the levels of production.

Anthony samora

Fixed costs: are those costs which can not change as the level of production changes. valiable costs: are those costs which change as the level of production changes.

genet

fixed cost:- nothing less or more process of cost
Variable cost:- Any change can happen to increase or decrease the process of cost depending on the company's higher or lower production.

farhan

Fixed cost is remain constant in total and change in cost per unit when activity level increase or decrease. ..... variable cost is constant in cost per unit and change in total cost when activity level is increase or decrease

Muhammad Ans

Fixed cost;The cost which remains constant with the change in activity level is known as fixed cost e.g rent,insurance, depreciation etc.
variable cost;The cost which changes directly with the change in activity level is called variable cost lets suppose a foctory ABC manufacture toys normally and it manufactures 10000 toys and the cost of making 10000 toys is $15000 the cost per unit is 1.5 if the factory makes toys on a contract in hoidays it makes 100000 toys in the cost of 150000 again the cost per unit is 1.5 we conclude two rezults one is variable cost changes directly with the change in activity level and the second is that variable cost remains constant per unit but changes in total

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