Assistant Manager Finance Interview Questions and Answers for Freshers

Variable costs change with production levels while fixed costs remain constant.

• Variable costs fluctuate based on production volume (e.g. raw materials, labor)

• Fixed costs remain the same regardless of production levels (e.g. rent, salaries)

• Variable costs are directly related to the level of output, while fixed costs are independent of output

• Understanding the distinction between variable and fixed costs is crucial for budgeting and decision-making in business