ECONOMICS

Detailed explanation-1: -What Is a Variable Cost? 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 are sometimes called unit-level costs as they vary with the number of units produced.

Detailed explanation-3: -Variable costs are costs that change with the changes in the level of production. That is, they rise as the production volume increases and decrease as the production volume decreases.

Detailed explanation-4: -The marginal cost of production measures the change in total cost with respect to a change in production levels, and fixed costs do not change with production levels.

Detailed explanation-5: -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.