Examples of fixed costs include equipment costs and salaries; while variable costs include costs of materials and transportation costs.
<h3>What is "cost"?</h3>
In a company, costs include all the money that has to be paid for the company to offer a product or service.
<h3>What is the difference between a variable cost and a fixed cost?</h3>
Variable costs can vary or change depending on the number of units produced; on the other hand, fixed costs are constant.
<h3>What are some fixed and variable costs?</h3>
Fixed costs:
- Equipment cost.
- Interests on a debt.
- Salaries.
Variable costs:
- Cost of materials such as metal or wood.
- Transportation and packaging costs.
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