Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
Which costs are fixed and which are variable quizlet?
Fixed costs do not change when the business changes its level of output e.g. rent, rates and salaries. Variable costs change with the business's level of output e.g. fuel costs, wages, raw materials and components.
What costs are both fixed and variable?
Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.
What are 4 examples of variable costs?
What Are Some Examples of Fixed Costs? Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.