ECONOMICS

Detailed explanation-1: -Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

Detailed explanation-2: -For example, the packaging costs associated with a product would be a variable cost since the packaging costs would increase as sales increased. 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.

Detailed explanation-3: -Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials. Fixed costs, on the other hand, are any expenses that remain the same no matter how much a company produces.

Detailed explanation-4: -Fixed costs are those costs that your manufacturer incurs no matter what the production output or volume is. Whether you order a small volume or large volume of packaging, these fixed costs will be constant.

Detailed explanation-5: -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.