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What is the difference between an operating cost and a fixed cost?
Wiki User
∙ 9y ago
Fixed costs basically refer to those expenses each month that do not vary such as building rent, insurance premiums, business loans or other business costs that are constant. Operating costs would be those that DO vary such as the cost of inventory, wages, advertising, business supplies, etc.
Example: Operating cost: things that maintain your motor vehicle and money you spend for gas, oil, and tires. Operating cost vary based on the number of miles you drive, the more you drive the more the cost ill be.
Fixed cost: the purchase price of the vehicle, insurance and licensing fees. These cost occur no matter how much you drive, in fact the more you drive the less it costs. So because they come no matter what the costs do not vary.
Wiki User
∙ 9y ago
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What determines the difference between a variable and a fixed cost?
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Fixed-overhead budget variance?
Fixed overhead budgeted variance is the difference between estimated budgeted cost and actual fixed overhead cost of production.
What is the difference between overhead cost and fixed cost?
Fixed cost is a cost that does not typically vary on unit production. On the other hand overhead cost is the summation of all variable cost.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
Explain the difference between term fixed cost and joint cost?
well i dont know ..but i think fixed cost which means the cost will distributed to labors and other variables but joint cost i dont know about it
Difference between semi variable costs and semi fixed costs?
a semi fixed cost moves upward in a step where semi variable cost begining at a given base level
What is the difference between a quote and estimate?
An Estimate is what someone thinks it will cost. A Quote is a fixed price to get the job done.
What is the Difference between gross profit and fluctuating profit?
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
What is the relationship between total fixed cost and output?
What is the relation ship between total fixed cost and output?
What are examples of fixed and variable cost in an airline company?
Some of the Variable costs are Fuel Cost, energy, and operating cost
Relationship between fixed cost and variable cost?
There is a huge relationship between fixed cost and variable cost. These two costs are the opposite of each other.
What is cost What is the difference between total cost and average cost?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
