Answer:
Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.
Fixed costs, on the other hand, are any expenses that remain the same no matter how much a company produces. These costs are normally independent of a company's specific business activities and include things like rent, property tax, insurance, and depreciation.
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