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Fixed Costs are costs that will not change if the business increases or decreases business activity. This means fixed costs have to be paid even when the business is not carrying out any business activity. Examples of fixed costs or overheads are rent for the business premises.
Variare costs that will change if business activity changes. This is because when business activity increases more resources such as materials and utilities (gas, electricity, fuel etc) are used.
Starting costs are costs that the business needs to pay before it can start business activity. Start up costs include purchase of machinery, premises, office equipment and furniture
