Differentiate between fixed costs and variable costs.

Question

Difference between Fixed Costs and Variable Costs:Fixed CostVariable Cost(i) They are the expenditures incurred on fixed...

Accepted Answer

Difference between Fixed Costs and Variable Costs:Fixed CostVariable Cost(i) They are the expenditures incurred on fixed...

Fixed Cost	Variable Cost
(i) They are the expenditures incurred on fixed factors of production.	(i) They are the expenditures incurred on variable factors of production.
(ii) They do not change with the change in the level of output i.e. they remain.	(ii) They change with the change in the level of output.
(iii) They exist even at the zero level of output.	(iii) They do not exist at the zero level of output.