||Those cost which are included on fixed factors of production is called fixed cost.
||Those cost which are included on variable factors of production is called variable cost.
||Fixed factors of production are capital equipment, machines, plant, building salary of permanent staff, etc.
||Variable factors of production are expenses on raw materials, wages and salary for casual workers, running expenses, etc.
||Fixed costs do not change with the level of output in short run.
||Variable cost changes with the changes in output in short run.
||It remains same even at zero level of output.
||Variable cost is zero only if there is no production of output.
||It remains constant.
||It changes at different level of production.