Fixed cost (FC) is the costs, value of which- does not change depending on the increase or decrease in the volume of production. Even if a firm produces nothing, it still has this kind of costs. For fixed costs include, for example, interest payments on loans, depreciation, hire.
Variable cost (VC) is the cost, value of which varies depending on changes in production volumes. For variable costs include the purchase of raw materials, wages of employees.
Total costs - is the sum of fixed and variable costs at a certain volume of production.
TC=FC+VC