What is a Variable Cost? Definition

variable cost  Variable costs, also known as variable expenses, are the cost of raw materials, distribution and labor for each unit of productservice you sell How to Calculate Variable Cost With Formula and Examples · Total output quantity x variable cost of each output unit = total variable cost

A variable cost is an expense that changes in proportion to production or sales volume  A variable cost changes with how many sales your business makes or how active it is An example could be bookkeeper's fees which increase as the business

Cost is the monetary value of goods and services purchased by producers and consumers For example, a consumer typically equates cost with the price of a variable rate mortgage will give cooperative banks the ability to generate the necessary earnings to pay competitive rates This will occur , al- though