Category Archives: CS Notes

Fixed and Variable Cost

   Basis    Fixed cost Variable cost (1.) Meaning Fixed cost are those cost which do not vary with the lavel of output. Variable cost are the cost which vary with the lavel of output. (2.) Factors of production Fixed cost are the cost incurred on fixed factors of production like land, machine, building etc. Variable cost are incurred on the employment  of variable factors such as material labour etc. (3.) Alternative name It is also known as indirect cost.

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