# 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.
Q&A Related to "What Are Variable Costs"
 Variable vs. Fixed Costs. Fixed costs of a process are those that go into manufacturing the initial unit of a product. Building or buying the factory, setting up the initial equipment http://www.ehow.com/info_8640172_variable-unit-cos...
 Answer Semi variable cost is an expense which is both a fixed and variable cost. It shows similarities to telephone bills. One must pay line, rental and on top of that a price that http://wiki.answers.com/Q/What+is+semi-variable+co...
 Relationship showing variable costs as a percentage of sales. It is also 1 minus the contribution margin (cm) ratio. An example follows: The variable cost ratio is 40% (\$15,000/\$37,500 http://www.answers.com/topic/variable-cost-ratio
 1 Familiarize yourself with the difference between fixed costs and variable costs. Before categorizing costs, you will need to understand the differences between them. Fixed costs http://www.wikihow.com/Calculate-Variable-Costs