## Fixed Costs vs Variable Costs: Key Components of Business Success
In business management, distinguishing between **fixed costs** and **variable costs** is fundamental that managers should not overlook. Both types directly impact strategic decision-making, profit estimation, and financial stability.
### The difference between the two cost components
**Fixed costs** are expenses that do not fluctuate with production volume or sales revenue, regardless of how much the company operates. These costs remain the same even if output is zero. They are ongoing financial obligations that must be paid
View OriginalIn business management, distinguishing between **fixed costs** and **variable costs** is fundamental that managers should not overlook. Both types directly impact strategic decision-making, profit estimation, and financial stability.
### The difference between the two cost components
**Fixed costs** are expenses that do not fluctuate with production volume or sales revenue, regardless of how much the company operates. These costs remain the same even if output is zero. They are ongoing financial obligations that must be paid