Variable Cost vs Fixed Cost - Which is easier to meet up in business?

[IB D]

Fixed costs are those things that you would use in running your business which would take you about 5 years before you replace them. Variable costs are those business inputs that are needed and bought very frequently. Examples of fixed costs are buildings and machines. Examples of variable costs are raw materials and fuel.

Which one is easier to meet up in your own kind of business. For my own business, fixed costs are easier to meet up.

 

[Niyi Briggs]

For my cost it is easier to meet up with fixed costs than variable costs. In my poultry farm, my fixed costs are feeders/drinkers and space. My variable costs are cost of chicks and feed and they are very expensive to meet up with.

 

[hastral45]

Both are important requisites that must be met up in the running of a business.
For you to start a business, you need fixed assets like building, vehicles to operate.
After getting the fixed assets, variable assets that would be used in daily operation of the business come in. You need raw materials, labour to operate. Without these assets, your business cannot come into operation.

 

[IB D]

I think the businesses that have the cheapest variable costs are services businesses. They don't need much to be in operation each day. Some just need fuel daily and business resumes.

 

[hastral45]

I think the businesses that have the cheapest variable costs are services businesses. They don't need much to be in operation each day. Some just need fuel daily and business resumes.

Yes. It agreed that service oriented business do not require much variable assets but this depends upon the sizes of that business. There are many big brand service provided companies that require much variable and fixed assets. Examples are insurance companies, banks, electricity companies, financial houses etc

 

[eldavis]

For me though i feel the fixed cost is easier for me, cause once i buy them i know it would take me a long period of time before i would have to buy them again.

 

[Etini Willie]

For me though i feel the fixed cost is easier for me, cause once i buy them i know it would take me a long period of time before i would have to buy them again.

The fixed costs is something that you would just buy and have rest of mind. Recurrent costs gives you cause to be thinking everyday.

 

[Heatman]

I think the businesses that have the cheapest variable costs are services businesses. They don't need much to be in operation each day. Some just need fuel daily and business resumes.

It really depends on the kind of services or the business that someone is actually doing which is going to determine the best cost the person should run under the business in order to make profit.

 

[IB D]

It really depends on the kind of services or the business that someone is actually doing which is going to determine the best cost the person should run under the business in order to make profit.

For all businesses, fixed costs are always very expensive at the initial stage. As time goes on, you realize that it was nothing if you bought a durable producr that can last for years.

 

[Niyi Briggs]

It still depends on the kind of business. Take for instance an agency banking business, the stand is not as expensive as the daily running costs.

 

[Heatman]

For all businesses, fixed costs are always very expensive at the initial stage. As time goes on, you realize that it was nothing if you bought a durable producr that can last for years.

The most important thing is for the business owner to always work out on the best cost strategy that is going to help to minimise their expenses and improve and maximise their profits.

 

[Samuzor]

Fixed costs are those things that you would use in running your business which would take you about 5 years before you replace them. Variable costs are those business inputs that are needed and bought very frequently. Examples of fixed costs are buildings and machines. Examples of variable costs are raw materials and fuel.

Which one is easier to meet up in your own kind of business. For my own business, fixed costs are easier to meet up.

I agree with you, fixed cost is more easier to settle than variable cost, the only problem I have about fixed cost is that it's taxed, although you can to manipulate your way to eliminate the tax factor

 

[astutimeliana723]

Both are important requisites that must be met up in the running of a business.
For you to start a business, you need fixed assets like building, vehicles to operate.
After getting the fixed assets, variable assets that would be used in daily operation of the business come in. You need raw materials, labour to operate. Without these assets, your business cannot come into operation.

.

Right, I totally agree with you. Fixed costs and variable costs both exist in business and complement each other. But for my business, I find it easier to find variable costs. Because my business does not require a lot of assets that continue to experience depreciation of benefits.

 

[Passiveearner]

A price that could be adjusted is the kind of price that I would prefer. This is because we may need flexibility when it comes to pricing any kind of product in our business. This is a much better option.

 

[Niyi Briggs]

Some people think variable cost is easier to meet up because it can be tuned down to the quantity and level you want to operate.

 

[Etini Willie]

For a service business like a barbing saloon, variable costs are easier to meet up with. All you need might just be fuel to start the day.

 

[Sophie]

I think it's easier to meet up with variable cost in a business than fixed cost because if I'm being honest things don't always turn out the way we want

 

[Golden9]

I find the variable costs to be easier because I can easily get the funds from my other business. It takes time to accumulate enough money though for fixed costs, especially if you want to expand the business.

 

[Heatman]

A price that could be adjusted is the kind of price that I would prefer. This is because we may need flexibility when it comes to pricing any kind of product in our business. This is a much better option.

Pricing is very important for any business and you should fix it in a way that you won't miss your customers to your competitors.

 

[Niyi Briggs]

I find the variable costs to be easier because I can easily get the funds from my other business. It takes time to accumulate enough money though for fixed costs, especially if you want to expand the business.

It depends on persons and kind of businesses. Fixed costs are generally more espensive to secure but the convenience of finishing that cost once and for all is why some people feel it is easier.