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Difference between fixed cost and variable cost - Class 12 Economics Cost means the amount of money spent by a company on the manufacture or manufacturing of goods or services. Fixed Costs Meaning of Fixed Costs- Costs that remain constant for some time, regardless of the level of outputs. Dependence of Fixed Costs- Dependent on fixed factors. Cost at Output = 0 -- FC = n, ‘n’ is the fixed amount that stays constant. Longevity of Fixed Costs - Found only in the long run. Other names of Fixed Costs- Overhead costs, Supplementary costs or Period costs. Examples of Fixed Costs - Rent, loan payments, property taxes, depreciation. Variable Costs Meaning of Variable Costs- Costs that vary in direct proportion to the changes in business activities. Dependence Variable Costs- Dependent on variable factors. Cost at Output = 0 -- VC = 0 Longevity Variable Costs - Found in the long and short run. Other names Variable Costs- Direct costs, Prime costs. Examples Variable Costs - Costs of goods...