Difference Between Fixed Cost and Variable Cost with Example

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variable cost A variable cost is any corporate expense that changes along with changes in production volume

Uses Contribution Margin Income Statement showing Sales – VARIABLE expenses = Contribution Margin variable cost Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount

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variable cost A variable cost is any corporate expense that changes along with changes in production volume

cost of goods sold Uses Contribution Margin Income Statement showing Sales – VARIABLE expenses = Contribution Margin

Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount