Understanding Variable Costs: Beginner's Guide

Understanding Variable Costs: Beginner's Guide variable cost A variable cost is an ongoing business expense that is subject to change directly based on how much of product is made or sold If the total fixed cost What is Variable cost VARIABLE COST Variable is the expense bore by a company that changes with change in production and sales It is not fixed, unlike fixed

fixed cost A variable cost is any corporate expense that changes along with changes in production volume

กระเป๋า lacoste Variable costs are costs that vary in direct proportion to production volume; they rise as production increases and fall as production decreases  Uses Contribution Margin Income Statement showing Sales – VARIABLE expenses = Contribution Margin