In: Accounting
definition for “Variable Costs”, “Fixed Costs”, mention and explain “Two Subcategories of Variable Costs”, and mention some examples of “Fixed Costs”
Variable Costs
Variable costs are the costs which carry in relation to the production of the output. They remain constant at per unit level but at Output level they keep changing
2 Sub categories of Variable Costs
Fixed Costs:
Fixed costs are the costs which keep constant at overall level. They remain fixed at absolute level and but keep changing at per unit level. The higher the production the lower the fixed cost per unit
Examples of Fixed Cost