Q. 34.0( 1 Vote )

State any two exa

Answer :

Variable cost is the cost that varies with the level of output. The higher the level of output the higher the variable cost incurred. The two examples of variable costs are wages of casual labour and cost of raw material.


OR


Fixed cost is the cost that does not vary with the level of output. It does not change over a short period of time. The two examples of fixed costs are the cost incurred on purchasing machinery and the salary of permanent employees.


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