Class,there are about30million businesses in the United States.Of which more than25million are small businesses.All businesses are profit maximizers. Profit=Total Revenue-Total Cost. As you can see,cost is a major component firms consider in maximizing their profit. Costs are divided in to two parts:FIXED COSTS and VARIABLE COSTS. To start with,what is your understanding of ACCOUNTING COST,ECONOMIC COST,FIXED COST,VARIABLE COST?Please provide examples.Why is it important for a business to identify its cost as fixed or variable