Credit: The Great Harrison Metal (This has been uploaded to help people for free)
Fixed cost includes expenses that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and loan payments, while variable costs are expenses that change directly and proportionally to the changes in business activity level or volume, like direct labor, taxes, and operational .
Variable costs, however, change over a specified period and are associated directly to the business activity. These are based on the business performance and the volume of services the business generates.
Some examples of variable costs include:
Direct labor
Commissions
Taxes
Operational expenses
Sources:
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