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Topic: Business
Number of pages / Number of words: 2 / 355
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Fixed costs are costs that do not change as sales activity go up and down and Variable costs are costs that vary with the level of output. In the case of the assignment, Item 1 Raw Materials is the variable costs because the cost of livestock depends on supply and demand. And Item 2, Building Rent is fixed because there usually is a lease contract and is locked for a block of time, example 5 year lease...


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Fixed costs are costs that do not change as sales activity go up and down and Variable costs are costs that vary with the level of output. In the case of the assignment, Item 1 Raw Materials is the variable costs because the cost of livestock depends on supply and demand. And Item 2, Building Rent is fixed because there usually is a lease contract and is locked for a block of time, example 5 year lease...


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