## Fixed Cost vs Variable Cost: The Financial Basics Every Entrepreneur Must Understand
Running a business is all about avoiding "confusing accounts." Many novice entrepreneurs spend money but fail to distinguish between fixed costs (Fix Cost) and variable costs, ultimately damaging profitable projects.
In essence, these two concepts boil down to one thing—**one type of expense cannot be avoided, while the other can be controlled**. Once you grasp this logic, your business decisions will be much more effective and less prone to pitfalls.
## What is Fixed Cost (Fixed Cost)?
Fixed costs are expe
View OriginalRunning a business is all about avoiding "confusing accounts." Many novice entrepreneurs spend money but fail to distinguish between fixed costs (Fix Cost) and variable costs, ultimately damaging profitable projects.
In essence, these two concepts boil down to one thing—**one type of expense cannot be avoided, while the other can be controlled**. Once you grasp this logic, your business decisions will be much more effective and less prone to pitfalls.
## What is Fixed Cost (Fixed Cost)?
Fixed costs are expe