(i) Following are the points of difference between Fixed Cost and Variable Cost:

S.No	Fixed Cost (FC)	Variable Cost (VC)
1	Fixed Costs (FC) are the costs incurred on the employment of fixed factors of production	Variable Costs (VC) are the costs incurred on the employment of vaiable factors of production
2.	These costs remain constant and do not change with the level of output	These costs vary with the vary level of output
3	Examples Rent of the building Insurance payments Salaries of permanent employees	Examples Cost of raw material Daily wages Freight charges

(ii) Following are the points of difference between Average Cost and Marginal Cost

S.No	Average Cost(AC)	Marginal Cost (MC)
1	Average Cost(AC) is the cost per unit of output produced	Marginal Cost (MC) is the change in the Total Cost by producing an additional unit of output.
2.	It is calculated by dividing the Total Cost with the number of units produced \(AC=\frac { TC }{ q } \) q being the units of output produced	It can be derived as: \(MC_{ q }=TC_{ q }-TC_{ q-1 }\\ or\quad MC=\frac { \Delta TC }{ \Delta q } \) q being the units of output produced