Answer to Question #235705 in Psychology for Phindile Dlamini

Question

Explain the difference between the fixed costs and variable cost a band give 1 example of each

Answer 1

Variable costs include the costs that vary based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.