ECONOMICS

Detailed explanation-1: -Variable costs are costs that vary in total directly and proportionately with changes in the activity level.

Detailed explanation-2: -Variable costs: A variable cost increases or decreases as volume of activity increases or decreases. On a per unit basis, a variable cost per unit remains constant but the total amount of variable cost changes with the level of production.

Detailed explanation-3: -Variable costs are directly proportional to the level of production. If zero output is being produced then these costs do not have to be incurred. These costs vary with the level of output produced. Wages paid to the factory labour is an example of the same.

Detailed explanation-4: -Variable costs are expenses that vary in proportion to the volume of goods or services that a business produces. In other words, they are costs that vary depending on the volume of activity. The costs increase as the volume of activities increases and decrease as the volume of activities decreases.

Detailed explanation-5: -Mixed costs are costs that contain both variable-cost and fixed-cost components. Mixed costs, therefore, change in total but not proportionately with changes in the activity level.