What Is The Variable Cost, Fixed Cost And Total Cost Of A Product?

Anonymous answered

1) Variable cost are the costs tha change with scale of production
2) Fixed cost are the costs that are fixed throughout the production process and paid on linea bases if varies then very little
3) Total costs are the cost that include both Fixed and variable cost times quantity produced

d ds answered

These are different components of cost. Variable costs are the expenses that depend on the level of production; they vary with the business activity. These costs are a function of the production of the business. For example when a manufacturing company does not produce anything, some of the costs will be eliminated for example labor cost. Fixed costs are basically not related to the business activity, these costs exist even when the business does not perform anything. An example would be the machinery cost. Total cost is a sum of all the variable and fixed costs.
Total cost = variable cost + fixed cost

What Is The Variable Cost, Fixed Cost And Total Cost Of A Product?

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