Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 10

What is the difference between variable and fixed costs?

Step 1 of 2

Cost:

Cost refers to the expenditure incurred to manufacture product or provide a service. Since a number of cost are incurred during production process these costs are required to be bifurcated based on their usage, frequency etc.

In manufacturing process cost in divided into fixed cost and variable cost.