222k views
3 votes
The difference between fixed costs and variable costs is that ?

User Arshid Dar
by
7.3k points

1 Answer

4 votes

Answer: Variable costs change based on the amount of output produced.

Explanation: Companies incur two types of production costs: variable and fixed costs. 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.

User Jprbest
by
8.4k points