Diffrent types of costs

Total cost: the total cost that is incurred in producing a product (output).Total cost includes both fixed cost and variable cost.

TC=FC+VC
Where tc-total cost
            Fc-Fixed cost
           Vc-variable cost
Example:let us take the example of apple company the cost which  is incurred in producing apple iphone is called total cost.

FIXED COST:The cost that doesn't change with the production is called fixed cost.Fixed cost is constant in nature

Example:Factory rent
Explanation:wheather the production is running are not in .we have to pay factory cost.Is know as fixed cost

VARIABLE COST:The cost which changes along with the change  in production is know as variable cost.which is variable in nature

Example:wages of labour
Explanation:As we start the production we need labour so we pay wages to the labour so the wages depend upon production it is called variable cost