In a business context, a variable cost is an expense that varies depending on production or sales levels. Unlike fixed costs, which remain the same regardless of output, variable costs may change based on business activity. Variable costs are also pivotal in determining a business's gross profit...
二、变动成本是指成本总额随着业务量的变动而成正比例变动的成本。为了更好的理解该词，以下是其英文释义：A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increa...
The packaging costs associated with a product would be a variable cost since the packaging costs would increase as sales increased. Theraw materialsused to make the product would also be variable costs since the cost of materials would rise and fall depending on the sales volume of the product....
However, while variable costs change depending on production, fixed costs remain the same even as production and sales volume changes. Common fixed cost examples include: Rent Salaries Insurance Property taxes and interest Depreciation Some utility costs Variable and fixed costs are key elements of ...
rent paid for a building will be the same regardless of the number of widgets produced within that building. In contrast, variable costs do change depending on production volume. For example, the cost of materials that go into producing the widgets will rise as the number of widgets produce...
aA corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office sup...
Depending on how your sales or production rates are going, your variable costs can rise or fall—hence the name. So what do you need to know about budgeting for these fluctuating costs? How do variable costs impact your bottom line? What are some examples of variable costs, and how should...
Production Supplies Supplies like machinery oil are consumed per the amount of machinery usage; that’s why they vary depending on production volume. Plant upkeep supplies like lubricants, gaskets, repair tools, etc. Freight Out Freight out can be considered a variable cost. A business incurs a ...
if your business produces more units, variable costs will also increase. They rise along with production increases and fall when there’s a decrease in production. For example, the amount your business spends on raw materials is variable, because it will fluctuate depending on your production ...
any additional production costs E. those indirect costs that change directly or almost directly depending on changes in production volume, such as indirect labor and indirect materials F. those direct costs that change directly or almost directly depending on changes in production volume, such as ...