Asked by Capria Hickman on Sep 26, 2024
Variable costs are related to time, while fixed costs are related to volume.
Variable Costs
Expenses that vary directly with the level of production or output, such as materials and labor costs.
Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.
- Comprehend the distinction between various costs (fixed and variable) and their role in financial planning.
Learning Objectives
- Comprehend the distinction between various costs (fixed and variable) and their role in financial planning.
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