Explaining Fixed and Variable Costs of Production

variable cost  Variable costs make the company's expense structure flexible and adaptable to changing business conditions As variable costs change based on Variable costs are costs that vary in direct proportion to production volume; they rise as production increases and fall as production decreases

Fixed and variable costs impact the business in different ways but both are important in making the business profitable In the discussion of costs, it will be Variable costs are the costs a company incurs proportionately to production quantity or revenue, including any costs that fluctuate

The most common variable costs include raw materials, direct labor, and shipping costs These costs are directly tied to the production volume and can change Variable costs are expenses that vary in proportion to the volume of goods or services that a