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.

Related Business Studies GCSE answers

All answers ▸

Identify 2 risks Jim undertook when starting his own business


Discuss two different stakeholders that may resist change in business


What is Lewin's Force Field Analysis and how is it useful for a Business or an organisation?


What is a stakeholder? Identify two stakeholders and there role in a business.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy