ECONOMICS

Detailed explanation-1: -A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.

Detailed explanation-2: -Variable Costs (VC)-costs that change, in total, in direct proportion to changes in volume of. activity. Fixed Costs (FC)-costs that do not change, in total, despite changes in production level.

Detailed explanation-3: -Variable Costs. A variable cost is one whose total dollar amount varies in direct proportion to changes in the activity level.

Detailed explanation-4: -Variable costs are costs that vary in total in direct proportion to changes in the activity level. The dollars available from each unit of sales to cover fixed cost and profit are the unit variable cost.

Detailed explanation-5: -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.”