Variable Cost: Definition, Examples & How to Calculate it
variable cost Depending on the volume of the production in a company, the variable cost increases or decreases The various examples of variable costs are the cost of raw Examples of variable costs include raw materials, direct labour, and utilities On the other hand, fixed costs remain constant regardless of production or sales
Variable costs are incurred when production output or sales volume increases Fixed costs are also known as overhead costs, period costs, or Variable expenses are costs that change over time, because the product price or your consumption changes Examples may include gasoline,
Variable cost examples · Cost of raw materials Perhaps these are the largest variable cost of most businesses · Direct labor costs Example of Variable Cost · Coffee Beans: $ · Milk: $ · Sugar and Flavoring: $ · Cup and Lid: $ · Direct Labor : $ The