what are the differences between fixed cost and variable cost
The main difference between fixed cost and variable cost is that fixed cost is cost that remains fixed throughout the production period irrespective of the level of production. Variable cost are those costs that varies according to level of production. In case of low production, it will be low and vice versa.
The difference between fixed and variable costs is that fixed costs are constant and are not affected by daily needs or volume, whereas variable costs have a direct relationship with daily activity and expenses, explains Accounting Tools. Mixed costs are expenses that contain elements of both variable and fixed costs. Continue Reading.