-Increase directly in proportion to the level of sales in dollars or units sold-Change in proportion to the activity of a business-Sometimes referred to as unit-level costs since they vary with the number of units produced-Can also be referred to as Cost of Goods Sold (COGS)-Examples include: -Cost of goods sold (COGS) -Direct labour costs -Sales commission -Shipping charges -Delivery Charges -Cost of direct materials or supplies -Wages of temporary or part-time employees -Bonuses
-Stay the same regardless of sales-Fixed costs are sometimes referred to as Operating Overhead Expenses or Recurring Costs-Examples include: -Marketing related costs -Rent -Insurance -Equipment expenses -Business licenses -Salary of permanent full-time employees
-Similar to capital costs-Capital costs are the fees associated with the initial setup of a plant or project, after which there will only be recurring operational or running costs-Capital costs are one time expenses-Capital costs are fixed and are therefore independent of the level of output-Payment may be spread out over many years in financial reports and tax returns-Examples include: -Land -Real estate -Buildings -Construction -Purchase of equipment -Leasehold improvements/renovations
Percentage change is a way to express a change in a variable.It represents the relative change between the old value and the new one. It allows marketers to compare performance indicators such as revenue over different periods. In this particular case, the chart indicates the shrinking of US Newspaper Advertising Revenues and the percent change year-over-year.