Fixed and Variable Costs

variable cost  Variable costs are expenses that change in proportion to the production output or the level of business activity  What is Variable cost VARIABLE COST Variable is the expense bore by a company that changes with change in production and sales It is not fixed, unlike fixed

For example, if your variable cost per unit is $5 and you're producing 500 units, your total variable cost would be $2,500  Variable expenses are costs that change over time, because the product price or your consumption changes Examples may include gasoline,

Variable costing is an accounting method used in managerial accounting and financial modeling to analyze the profitability of products and Variable costs are expenses that change in proportion to the production output or the level of business activity