Hola

Name: Jose Arroyo H.
Course: 6to Sagitario.
Date: 11-12-2011
Assignment: microeconomics

Fixed costs variable costs, and total costs

Fixed costs: In economics, are business expenses that arenot dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents being paid per month, and are often referred to as overhead costs.* In management accounting: fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent andutility bills irrespective of sales.

* In marketing: it is necessary to know how costs divide between variable and fixed.
total cost: In economics, and cost accounting, describes the totaleconomic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which areindependent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery. Total cost in economics includes the total opportunitycost of each factor of production as part of its fixed or variable costs. Producing a specific level of output is the cost of all the factors of input used.
In marketing, it is necessary to know howtotal costs divide between variable and fixed.
Variable costs: are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal costs over all unitsproduced. It can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Direct Costs, however, are costs that can easily be associated with a particular costobject. However, not all variable costs are direct costs. For example, variable manufacturing overhead costs are variable costs that are indirect costs, not direct costs. Variable costs are...