In few words I need a substantive comment on this post:

Fixed cost are costs that remain the same throughout the business. An increase in production or an increase in sales does not make these costs change. An example of fixed costs are salaried employees that receive no other form of compensation. Many managers are salaried employees that receive the same amount of pay every pay period regardless of an increase or decrease in sales. Another example of a fixed cost would be the lease or rent payment on the building the business is in. This cost typically stays the same throughout the term specified in a contract. Fixed cost allows businesses to budget these items for the specified time period without worrying about fluctuation. Variable costs are costs that change based on the amount of work performed or goods sold. Examples of variable costs include hourly paid employees and goods used in manufacturing of items to be sold. Both of these typically change based on workload. Hourly employees that work overtime have no set pay because their hours could change from pay period to pay period. Goods used in manufacturing of items to be sold can change based on orders placed in the specified time period. A company can budget for variable costs by using data from previous time periods. This type of budgeting will have to allow for some increase and decrease in sales. If a company manufactures certain items that are seasonal, they can forecast their busier times of sales and plan for that. Non-seasonal items have to be planned for based on records from the past time periods as well. There may be times the business comes in under budget but there will also be times of going over the budget. Most budgets will allow for some wiggle room in variable costs and planning for this will allow the business to still be profitable.