What is the difference between variable and fixed costs

November 15, 2016

Q: What is the difference between variable and fixed costs
Is there a difference between variable and fixed costs in RiskyProject and how are they entered?

A: Variable costs are those costs associated with resources that include a rate and units (allocation). Costs are calculated as a function of the rate * units consumed. Generally, the variable cost will fluctuate with the duration of the activities to which resources are assigned.
Fixed costs are those costs incurred that are not time dependent. Commonly, fixed costs can represent costs for materials or other one time fees etc. when the amount is not dependent upon the project schedule. Unlike resources, fixed costs are assigned to specific activates. In RiskyProject, fixed costs are added in the Cost and Income view.

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