What Are Variable Costs?


Variable costs are costs that change in proportion to sales such as raw materials, depletion and shipping. When the variable costs are high, there is a low level of operation gearing as a consequence.
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Ask.com Answer for: what are variable costs
variable cost
a cost that varies with a change in the volume of output while remaining uniform on a per-unit basis, as cost of labor (fixed cost).
Source: Dictionary.com
A variable cost is the expense of labour, material or overhead that changes the cost according to the change in the quantity of production units. Variable cost typically makes up the sum cost of production when combined with fixed costs.
The term variable costs refer to costs that vary depending on a company's production volume. These costs normally rise as production increases and they fall as production decreases. They normally vary or fluctuate with production output.
Variable cost is a cost of labour, material or fixed cost that changes according to the alteration in the volume of production units. When mixed with fixed costs, variable costs constitute the total cost of production.
Variable costs are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal cost, it can also be considered normal costs.
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