Define Fixed Cost And Variable Cost. The term fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. As per the definition, fixed cost is borne by the company throughout its functional period while variable cost changes.

Let us examine the main points of distinction in fixed costs and variable costs: Here's a look at the primary differences between fixed and variable costs: Fixed costs stay the same no matter how many sales you make,.