What is a variable cost? A guide for businesses

variable cost  Variable cost is a business expense that rises or falls in direct proportion to production volume The more goods a company produces, the higher What is the variable cost definition? The opposite of a fixed cost, a variable cost is an expense that fluctuates depending on the number of

Variable costs are the costs a company incurs proportionately to production quantity or revenue, including any costs that fluctuate  The most common variable costs include raw materials, direct labor, and shipping costs These costs are directly tied to the production volume and can change

Fixed costs are expenses that remain the same regardless of the level of production, while variable costs change based on the production output Rent, A variable cost is a recurring cost that changes in value according to the rise and fall of a company's revenue and output level Variable costs