Difference between fixed cost and variable cost.
| Sl. No. | Fixed Cost | Variable Cost |
| i | The amount of money spent on fixed factors of production is called fixed cost. | The amount of money spent on variable factors of production is called variable cost. |
| ii | Fixed cost does not change with change in level of output. | Variable cost changes with change in the level of output. |
| ii | Fixed cost can never be zero even when production is stopped. | Variable cost is zero when production is stopped |
| iv | E.g.:- Rent of building, salaries of permanent employees etc. | E.g.:-Cost of raw material, wages of temporary labour etc. |
