ENTREPRENEURSHIP

Detailed explanation-1: -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 cost is the cost which is in direct proportion to the number of units produced. As the output increases, variable cost increases.

Detailed explanation-3: -Variable costs are directly proportional to the level of production. If zero output is being produced then these costs do not have to be incurred. These costs vary with the level of output produced.

Detailed explanation-4: -Variable cost is a business expense that rises or falls in direct proportion to production volume.

Detailed explanation-5: -The total variable cost is the cost which increases or decreases in proportion to the increase or decrease in production volume. However, the variable cost per unit does not change with the production volume and hence remains constant.