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🤔 "Should I go to Australia or stay in Nepal?"
🚗 Buy a Car or Invest in Nepal?
🏛️ "Government job vs business?"
🎓 "MBA worth it?"
📈 Australia vs Japan Salary Calculator
🛵 "Bike or scooter?"
🏡 Buy Land or Buy House Calculator
✈️ "Study abroad or start a business?"
💼 Government Job vs Private Job Simulator
🇳🇵 Nepal vs Australia Financial Comparison
💼 Start Business or Keep Your Job?
🇨🇦 Is Canada Worth It Financially?
💰 Gold vs FD vs Stock vs Land
🚌 Bike vs Public Transport Cost Calculator
💡 "Should I buy a car or invest?"
📊 MBA ROI Calculator Nepal
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Difference between fixed cost and variable cost

Difference between fixed cost and variable cost

Difference between fixed cost and variable cost:

Basis
Fixed cost
 Variable cost
Definition
The cost incurred by the fixed factors of production is called the fixed cost.
The cost incurred by the variable factor of production is called variable cost.
Output
It does not change with output.
It changes with output.
Relation
It is related to the fixed factor.
It is related to the variable factor.
Continuation
A firm can continue its production even if the fixed cost is not covered in the short run.
Production will be continued by a firm only if it’s variable cost is covered.
Examples
Rent, salaries of permanent staff, interest on capital, insurance cost, etc.
Cost of raw materials, wages of casual labor, expenses on petty overheads, etc.


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