ICSE Class X Commercial Applications 2020 Solved Papers

SECTION - I

State one difference between each of the following:

Question : 5

Total: 32

Fixed Cost and Variable Cost

Solution:

Fixed Cost	Variable Cost
The cost which remain same or fixed irrespective of the changes in the volume of output during a given period of time, is known as fixed cost like rent, salary, insurance, etc.	The cost which changes or vary in amount with the changes in the level of output, is known as variable cost. It changes with change in output level, e.g., commission on sales, cost of packa. ging, etc.

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