Saturday, February 2, 2008

Variable and Fixed Costs

What are the difference between Variable and Fixed Cost?
  • Variable Cost
    It is the cost that changes with the amount of production or the amount of work.
    eg. Wages, cost of material, etc

  • Fixed Cost
    It is the costs that do not change as production changes.
    eg. one-time setup cost, rental cost, etc

No comments:

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)