ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Fixed costs are those costs that a company should bear irrespective of the levels of production.

Detailed explanation-2: -Fixed cost refers to the cost of a business expense that doesn’t change even with an increase or decrease in the number of goods and services produced or sold.

Detailed explanation-3: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the “Cost of Goods Sold.”

Detailed explanation-4: -Fixed costs, sometimes referred to as overhead costs, are expenses that don’t change from month to month, regardless of the business’ sales or production volume. In other words, they are set expenses the company must pay, at least in the short term.

Detailed explanation-5: -Fixed expenses, such as rent, stay the same from month to month. Variable expenses are ones that can change, such as gas or food.