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

6730 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

How do I answer a question concerning stakeholders in a business?


The external environment in which businesses operate can have a significant effect on their success. To what extent do you think that the external environments in markets are favorable for businesses at the moment? Justify your answer with reference to ex


What is a stakeholder?


Analyse how a capital intensive workforce will benefit a business? (9 marks


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:

© 2025 by IXL Learning