Difference between Fixed Cost and Variable Cost

fixed cost  FIXED COST definition: 1 a cost, such as wages, rent, or interest, that does not change in relation to how much a company… Learn more  How to Calculate Fixed and Variable Costs: Examples and Explanations · AFC = $50,000 100 widgets · AFC = $500 per widget · $200$100-$50 = 20050 = 4

When fixed costs are allocated to a specific department or product line, the allocated portion directly reduces the gross profit For example, Examples of Fixed Costs · Amortization This is the gradual charging to expense of the cost of an intangible asset

Definition of Fixed Cost A fixed cost is one that does not change in total within a reasonable range of activity Since the fixed cost remains constant in Top 11 Most Common Examples of Fixed Cost · #1 – Depreciation · #2 – Amortization · #3 – Insurance · #4 – Rent Paid · #5