|S.No.||Fixed cost||Variable cost|
|i.||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.|
|ii.||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.|
|iii.||Fixed costs do not change with the level of output in short run.||Variable cost changes with the changes in output in short run.|
|iv.||It remains same even at zero level of output.||Variable cost is zero only if there is no production of output.|
|v.||It remains constant.||It changes at different level of production.|
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