| 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. |
Difference between fixed and variable cost
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