O. Miller, Content Optimization Executive, Studied Journalism and Psychology, Austin,Texas
Answered May 10, 2019
Cost of materials is one of the variable values in a business. A variable cost creates changes in the proportion of the production output. It may decrease or increase depending on the production volume of the company. Rent is usually a fixed cost as rent does not change its price every month. The rent fee is generally protected by a contract between you and the contractor before you make rent as well as advertising.
Depreciation means the loss of the monetary value of a business asset. The materials cost, on the other hand, is a variable cost. The company might need a new stack of office supplies, and that would increase the value of that month. But if it will be required on the next month, then the cost will decrease as no office supplies are bought.