Direct costs can be fixed costs such as the rent for a production plant. Variable costs vary with the level of production output and can include raw materials and supplies for the machinery.

Schedule a FREE ... variable expenses change regularly and can be affected by your day-to-day choices. Variable costs per unit or period of time are less predictable than their fixed counterparts.

You’ll also want to consider the impact of inflation, as a lower fixed rate might not be enough to keep up with rising costs over time. “Variable annuities offer a chance to beat inflation ...