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What is the difference between fixed and variable costs?

What is the difference between fixed and variable costs?

发布时间:2025-01-31 08:55:51
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答案:Fixed costs are those that do not vary over a given period. Neither will it be affected by mileage or vehicle activity. In transport fixed costs are often referred to as ‘standing costs’, which exist whether the vehicles move or not, eg house rent and insurance.The opposite of fixed costs, these vary in relation to the amount of equipment used, eg costs of fuel and tyres. It is possible that a certain cost comes under more than one cost category. For example, fuel is both a direct cost because it goes to a particular vehicle and a variable cost because it varies with use.
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