What's the difference between fixed and variable costs?

Fixed are costs that do not change with the level of output. For example, heating bills would be a fixed cost. Whether we make 100 computers or 300 computers, our fixed costs do not change. Variable costs are costs that do change with output, for example packaging. If we make 100 computers and our packaging costs are £5 per computer, the our packaging costs would be £500. This would then change if we were to make 300 computers as our cost is not £900.

WN
Answered by Will N. Business Studies tutor

7064 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

How can companies improve motivation within a workforce?


Explain a benefit of using a) part-time staff in a business and b) full-time staff (3 marks each).


Describe the methods which may be used to motivate employees.


What is the function of a SWOT analysis?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning