Variable Costs

variable cost  The average variable cost is calculated by dividing a company's total variable cost by the quantity of output  Variable costs are expenses that vary in proportion to the volume of goods or services that a

A variable cost changes with how many sales your business makes or how active it is An example could be bookkeeper's fees which increase as the business A variable cost remains the same per unit but changes in total Variable cost examples include sales commissions, hourly workers, and units-of-production method

Fixed costs are normally independent of a company's specific business activities Variable costs increase as production rises and decrease as production falls  Fixed costs are expenses that remain the same regardless of the level of production, while variable costs change based on the production output Rent,