Variable Costs

variable cost  A variable cost is any corporate expense that changes along with changes in production volume As production increases, these costs rise and as Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount

A variable cost is any corporate expense that changes along with changes in production volume If sales or production fall, then those costs can also fall The easiest way to determine if a cost is variable, therefore, is to work out if

Variable costs are the costs incurred to create or deliver each unit of output So, by definition, they change according to the number of goods Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount