ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Variable Costs are directly related to how much value you create. If you’re in the business of creating cotton T-shirts, the more T-shirts you produce, the more cotton fabric you’ll need. Raw materials, usage-based utilities, and hourly workers are all variable costs.

Detailed explanation-2: -Variable costs that can change from month to month, such as entertainment, groceries, and clothing, should take up 30% of your income. Savings should take up 20% of your income.

Detailed explanation-3: -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-4: -Answer and Explanation: The cost of labels attached to shirts made by a company is classified as a variable cost. The more shirts the company makes, the more labels they will use and the fewer they make the fewer are used. This cost is a classic example of a clear variable cost.