What Is Cost:

Cost is something which is incurred to make some product of proving services like Salary, Rent And Wages, Raw Materials, Supplies etc.

Types of costs:

There is Two Types of Costs.

Fixed Cost:

Variable Cost:

Fixed Cost:

Fixed cost is such type of cost which is used to produce the product and services. This cost remain the same what ever you produce it does not changing by the increase in the quantity of product.

This cost is helpful in minimizing the cost when the products is in huge quantity e.g.

Variable Cost:

 

Variable cost is the totally difference of fixed cost its name indicates the change in the value of cost. It is such type of cost which is change according to the change in the production of products. 

Because the more production need more raw material and consumed more energy and utilities e.g Wages of labors, Electricity bills, and raw materials etc.