Question

Expenses can be variable or fixed"". Through examples show how an expense can fall in both the categories.

Answer 1

Answer:

Pie chart and calculator floating on yellow background

Fixed vs Variable Costs (with Industry Examples)

By Bryce Warnes on December 12, 2019

Contents

Fixed costs vs variable costs vs semi-variable costs

Fixed costs or variable costs—which is better?

Fixed and variable costs for an event (with examples)

Fixed and variable costs for manufacturing (with examples)

Fixed and variable costs for restaurants (with examples)

Fixed and variable costs in ecommerce (with examples)

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Lowering your fixed and variable costs increases your profits. But first, you need to know the difference between these two cost categories, and how to tell them apart on your financial statements.

Here’s everything you need to know about fixed vs variable costs, with examples from different industries to help make it stick.

Fixed costs vs variable costs vs semi-variable costs

Taken together, fixed and variable costs are the total cost of keeping your business running and making sales. Fixed costs stay the same no matter how many sales you make, while your total variable cost increases with sales volume.

Fixed and variable costs also have a friend in common: Semi-variable costs, which share qualities of each. Here’s a brief overview of all three