What's it: Total variable cost is the sum of all variable costs. Suppose you have data on variable costs per unit. In that case, you can calculate this by multiplying by the quantity to get the total variable cost figure. Variable cost varies
Fixed Cost: Meaning, Examples and Why It Matters
What's it: Fixed costs are types of costs whose value is unaffected by changes in the amount of output. When a firm increases output or decreases output, it does not change. For example, the factory machine's rental cost is $15,000,000 for 1 year.