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Variable vs. Fixed Cost

Variable Cost

  • Variable costs are costs that change.
  • For example, the cost of raw materials used in production may vary.
  • Selecting a Variable cost in the “Part Manager” allows you to enter the cost into the “Receiving Inspection.”

Fixed Cost

  • Fixed costs are costs that does not change.
  • For example, lease or rental payments.
  • These fixed costs can be entered through the “Cost Tracking” module.
  • A fixed cost can also be selected within the “Part Manager.”