What is Variable Cost?

variable cost  Variable costs are expenses that change in proportion to the production output or the level of business activity  1 Production cost · Materials to produce the shoes: $10,000 · Direct labor to manufacture the shoes: $13,000 · Additional materials: $$2,000

Variable costs are the costs incurred by a company that depends on revenue generated or production quantity If a company has high variable costs, 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

A variable cost is an expense that changes in proportion to the volume of production output or sales In other words, the increase or decrease Variable costs are the costs a company incurs proportionately to production quantity or revenue, including any costs that fluctuate