What is the difference between variable and fixed costs?

Accounting Dec 17, 2020

Expert Solution

Fixed costs are expenses that do not change no matter how much or little product or service is offered. Examples of fixed costs are things like rent or depreciation that is not tied to day-to-day costs. Variable costs are ones that can change depending on how much a business produces. Examples of variable costs included labor and supplies that change with the volume of units manufactured.

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