Student: Salary is the fixed cost.
Me: Why do you say that? Why is it not a variable cost?
Student: It does not change.
Me: What if I decide to grant increments every month. Now it will change every month.
Student: It still remains same for a month.
Me: We grant raise every Week.
Student: Confused but holds the argument: It is still fixed for the week.
Me: We decide to grant increment every day.
Student: Really confused now. Yes, it will be a variable cost now.
Another student: It will actually be variable fixed cost.
I could not stop my laugh at this point.
