{"id":39,"date":"2015-06-03T19:13:26","date_gmt":"2015-06-03T19:13:26","guid":{"rendered":"https:\/\/courses.candelalearning.com\/managacct2x10xmaster\/?post_type=chapter&p=39"},"modified":"2015-12-27T15:20:12","modified_gmt":"2015-12-27T15:20:12","slug":"variable-costs","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-managacct\/chapter\/variable-costs\/","title":{"raw":"5.2 Fixed and Variable Costs","rendered":"5.2 Fixed and Variable Costs"},"content":{"raw":"
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Fixed Costs<\/h2>\r\n<\/div>\r\n
\r\n\r\nFixed costs remain in TOTAL but change per unit based on the actual amount of production.\u00a0 Here is\u00a0a video to discuss these concepts.\r\n\r\nhttps:\/\/youtu.be\/Ah7EggKApHY\r\n\r\nExamples of fixed costs include monthly rent, mortgage or car payments, employee salary, depreciation calculated under straight-line method, and insurance.\r\n

Variable Costs<\/h2>\r\nVariable Costs remain the same PER UNIT but CHANGE in total.\u00a0 Watch this video for another explanation:\r\n\r\nhttps:\/\/youtu.be\/0Nmvjvhdex8\r\n\r\nVariable costs for a manufacturer would include things like direct labor of hourly workers, other wage employees, direct materials, applied overhead,\u00a0 sales commissions, and depreciation under units of production method.\r\n\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"
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Fixed Costs<\/h2>\n<\/div>\n
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Fixed costs remain in TOTAL but change per unit based on the actual amount of production.\u00a0 Here is\u00a0a video to discuss these concepts.<\/p>\n