State one difference between Fixed Cost and Variable Cost. – InterviewSolution

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1.

State one difference between Fixed Cost and Variable Cost.

Answer»

Difference between Fixed Cost & Variable cost :

Basis	Fixed Cost	Variable Cost
Meaning	The cost which remains same, regardless of the volume produced, is known as fixed cost	The cost which changes with the change in output is considered as a variable cost.
Behavior	It remains constant for a given period of time.	It changes with the change in the output level.
Example	Example Depreciation, Rent, Salary, Insurance, Tax etc.	Material Consumed, Wages, Commission on Sales, Packing Expenses, etc.

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