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 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: -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.