Question

What are fixed costs and variable costs with examples

Answer 1

Fixed costs often include rent, buildings, machinery, etc. Variable costs are costs that vary with output. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc.

Answer 2

Heya. user!

Fixed cost are the cost related to the use of fixed factor of production.

Example>

expenditure on machine and plant .

expenditure on land and building .

variable cost are expenditure incurred by the producer on the use of variable factor of production .

Example>



cost of raw material .

wages of casual worker .

expense on electricity .