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The cost type is not defined.

Fixed

Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents being paid per month, in contrast to variable costs, which are volume-related and are paid per quantity produced.

Variable

Variable costs are expenses that change in proportion to the activity of a business. They tend to be volume-related and are paid per quantity produced. They are the sum of marginal costs over all units produced. They can also be considered as typical costs.

Fixed costs and variable costs make up the two components of total costs.

Step Variable

Step variable costs change dramatically at certain points because they involve large purchases that cannot be spread out over time. For example, the cost of a maintenance worker is obtainable only in large chunks. This cost increases and decreases only in response to fairly wide changes in the activity level.