ECONOMICS

Detailed explanation-1: -Variable costs are directly related to the cost of production of goods or services, while fixed costs do not vary with the level of production.

Detailed explanation-2: -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.”

Detailed explanation-3: -Direct Variable Costs means the resources and supplies directly consumed in the manufacture of such Product, including, but not limited to, the cost of labor and raw materials.

Detailed explanation-4: -Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.

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.