Fixed vs. variable costs

Generally speaking, costs are either fixed or variable. These examples are from training:

• Fixed costs are those that are the same whether the class is small or large. Whether you have ten or twenty student in the room, the room costs the same.
• Variable costs are those that vary according to class size. Twenty books cost about twice as much to photocopy as ten books. Administration for twenty students cost about twice as much as administration for ten students.

It's not an absolute difference. If you had ten or twenty student in the room it might cost the same. But if the room holds only twenty-five, you will face increased costs if you have thirty students. You will have to pay for two rooms and two teachers.

Assessment can be either fixed or variable:

• Fixed: Paper tests and in-class assessment
• Variable: onsite visits for each student.