ECONOMICS

Detailed explanation-1: -Raw materials are categorized as direct expenses on a company’s income statement because they contribute directly to the making of a product or delivery of a service. As raw material costs change along with production volumes, they are considered to be variable costs.

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.

Detailed explanation-3: -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-4: -Variable cost FAQ Examples of variable costs include raw materials, sales commissions, packaging and shipping, manufacturing labor, and credit card fees.

Detailed explanation-5: -Variable cost FAQ Examples of variable costs include raw materials, sales commissions, packaging and shipping, manufacturing labor, and credit card fees.