What is Variable Cost? Definition and Guide
2 min read
What is Variable Cost? Definition and Guide

What is Variable Cost?
Variable cost is a business expense that rises or falls in direct proportion to production volume. Variable costs differ from fixed costs, which remain the same even as production and sales volume changes.
Common variable costs include:

Raw materials
Sales commissions
Packaging
Shipping 
Labor directly associated with production
Credit card fees

Calculating Variable Cost
Where fixed costs are simply added together to find a company's total fixed costs, variable...

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