ECONOMICS

Detailed explanation-1: -For example, the raw materials used as components of a product are variable costs because this type of expense typically fluctuates based on the number of units produced. Variable costs change depending on output quantity.

Detailed explanation-2: -Fixed cost is often called overhead. 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.

Detailed explanation-3: -Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. Variable costs are usually viewed as short-term costs as they can be adjusted quickly.

Detailed explanation-4: -Examples of variable expenses are direct materials, sales commissions, and credit card fees.

Detailed explanation-5: -The raw materials used to make the product would also be variable costs since the cost of materials would rise and fall depending on sales volume of the product. The raw materials would also be a variable cost. Although labor is typically a fixed cost, some labor is variable.