ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured. In short, if the total cost associated with the cost object changes when the production amount changes, it’s likely a variable cost.

Detailed explanation-2: -Transport costs are the costs internally assumed by the providers of transport services. They come as fixed (infrastructure) and variable (operating) costs, depending on conditions related to geography, infrastructure, administrative barriers, energy, and how passengers and freight are carried.

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: -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.