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For example: rent, property taxes, depreciation, and upper management salaries are considered fixed cost. Fixed Costs are those "costs that remain the relatively constant regardless of the volume of operations." (Block,652). Fixed assets are also considered fixed costs. Fixed assets are those items that are owned by the company and that would not be considered for resale. Depreciation is "the allocation of the initial cost of an asset over its useful life. The annual expense of plant and equipment is matched against the revenues that are being produced." (Block,649).
Variable cost are those cost that "move directly with a change in volume" (Block, 665)...
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