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These costs are represented in fixed objects involved in the production of a company. Warehouses or facilities are the best examples but sometimes costs such as utilities can be included.
Variable
Most production costs adjust as the level of production increases or decreases. Variable cost is the term which helps explain the costs incurred or lost when production levels change. Several different items can, and most often will. Each individual cost is known as variable, and the sum of all these costs is recognized as total variable cost (TVC). Examples include, equipment or machinery usage, labor, materials, or sometimes utilities could be included in this category as opposed to being listed as a fixed cost...
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