Fixed, Variable and total costFixed CostThe cost which does not vary with the volume of production is the fixed cost. This cost has no relation with the production quantity. For example the rent paid for the factory or the salary paid is fixed over period and it has no relation with number of units produced.Variable Cost
This cost has relation with the volume of production. The raw material cost is the example of variable cost.
Total CostSum of Fixed cost and Variable Cost is the total cost | ||
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