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What are the difference between the fixed costs and the variable costs?

Asked by Topperlearning User 25th April 2016, 1:04 PM
Answered by Expert
Answer:

Fixed costs: Fixed costs do not change with change in quantity of output. It remains the same whether output is zero or maximum. For example, cost of machineries, rent and licence fee.

Variable costs: It changes with change in quantity of output. Its cost is zero when output is zero. For example, cost of raw materials and expenses on electricity.

Answered by Expert 25th April 2016, 3:04 PM
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