Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa. Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run. Mixed Cost: The cost which is a combination of both the fixed cost and variable cost is called as mixed cost. To determine: The given cost as variable, fixed and mixed cost.

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Chapter 22, Problem 22.1BE

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Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

Mixed Cost: The cost which is a combination of both the fixed cost and variable cost is called as mixed cost.

To determine: The given cost as variable, fixed and mixed cost.

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