Variable Cost vs Fixed Cost: What's the Difference?
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variable cost The average variable cost is calculated by dividing a company's total variable cost by the quantity of output
If sales or production fall, then those costs can also fall The easiest way to determine if a cost is variable, therefore, is to work out if cost of goods sold Here, the variable cost is the unpredictable amount of transaction fees each month as opposed to a fixed monthly fee For example, a company may
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variable cost The average variable cost is calculated by dividing a company's total variable cost by the quantity of output
variable cost If sales or production fall, then those costs can also fall The easiest way to determine if a cost is variable, therefore, is to work out if
Here, the variable cost is the unpredictable amount of transaction fees each month as opposed to a fixed monthly fee For example, a company may