ECONOMICS

Detailed explanation-1: -Variable costs can include direct labour, ingredient/seed/feed costs, equipment repairs, fuel costs for distribution, marketing expenses and other costs. Fixed costs are consistent costs (overhead) that do not change from month to month. These costs occur no matter how much is produced.

Detailed explanation-2: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the “Cost of Goods Sold.”

Detailed explanation-3: -Wages are variable costs in a firm, as the number of employees required will vary based on the demand for production, therefore the wages paid to the total number of employees will vary with the number of employees.

Detailed explanation-4: -Some examples of variable costs include: Food costs, such as groceries and dining out.