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...
Piece-rate labor – employers pay their workers according to the number of units they produce – is also a cost that varies depending on production levels. If we don’t add or subtract labor costs from the production process as activity levels change, then it might not be a variable cost....
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...
Variable costs are costs that change depending on production. They are the main costs that businesses have to control in order to improve their...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough ...
In this example, utilities usually vary with production. As a company strives to produce more output, it is likely to require additional power, resulting in increased variable utility costs. Shipping/freight The total cost of shipping finished products varies depending on the number of units shipped...
Understand variable costs, their role in financial planning, and learn how to calculate them to optimize your business’s production and pricing strategies.
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...
The variable costs would include the cost of the raw materials used in production, the costof the labor needed to produce each unit, and any other costs that vary depending on the level of production. One of the key characteristics of variable costs is that they can be managed and ...
Variable costs are the costs a company incurs proportionately to production quantity or revenue. The general variable cost definition includes any costs that fluctuate depending on how much product a company produces or revenue it creates otherwise. If a project demands larger investment from the compa...
Total Variable Costs = Cost Per Unit x Total Number of Units = $3.50 x 500 =$1,750 This cost will change depending on the production level. If it makes 1000 candles, the variable costs will be $3,500 ($3.50 x 1000). Key difference between Fixed Cost Vs Variable Cost ...