What are the fixed and variable costs?
What are the fixed and variable costs? Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
How do you find fixed cost?
First, add up all of your production costs. Make sure to be clear about which costs are fixed and which ones are variable. Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.
Which is not a fixed cost?
Direct material cost is not a fixed cost; instead, it is a variable cost because this cost varies with the level of output.