Variable Cost: Definition, Examples & How to Calculate it

Variable Cost: Definition, Examples & How to Calculate it variable cost Variable cost examples · Cost of raw materials Perhaps these are the largest variable cost of most businesses · Direct labor costs cost of goods sold Definition Variable costs are expenses that change in proportion to the activity of a business, and can be aggregated into a total or expressed on a

cost of goods sold Variable costs are costs that change depending on the level of production a business has These changes could be due to the need for more raw material, less

กระเป๋าlacoste A variable cost changes with how many sales your business makes or how active it is An example could be bookkeeper's fees which increase as the business Semi-variable costs are less common than fixed and variable costs, and will differ from industry to industry Nevertheless, typical semi-variable costs include