different between fixced and variable cost
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Fixed cost
Fixed costs are costs that do not change when sales or production volumes increase or decrease . Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel. They are one of three types of costs incurred by most businesses.
Variable cost
A variable cost is a corporate expense that changes in proportion to how much a company produces or sells . Variable costs increase or decrease depending on a company's production or sales volume — they rise as production increases and fall as production decreases.
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