WhaleStalker
## Fixed Costs and Variable Costs: What They Mean and Why Managers Need to Know
Why do some businesses incur losses even as sales increase, while others can adapt more flexibly? The answer lies in cost management, especially in distinguishing between **fixed costs**—expenses that remain constant regardless of production or sales volume—and **variable costs**, which change in proportion to output. Understanding this difference is key to smart financial planning and investment decisions.
## Fixed Costs (Fixed Cost) - Expenses to Pay Regardless of Sales
**Fixed costs** refer to expenses that do n
View OriginalWhy do some businesses incur losses even as sales increase, while others can adapt more flexibly? The answer lies in cost management, especially in distinguishing between **fixed costs**—expenses that remain constant regardless of production or sales volume—and **variable costs**, which change in proportion to output. Understanding this difference is key to smart financial planning and investment decisions.
## Fixed Costs (Fixed Cost) - Expenses to Pay Regardless of Sales
**Fixed costs** refer to expenses that do n
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