Difference between Fixed Cost and Variable Cost

variable cost  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 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 the expenses a business incurs that change with the amount of goods produced or services provided More specifically, when production or Definition of Variable Cost A variable cost is a constant amount per unit produced or used Therefore, the total amount of the variable cost will change

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 Fixed costs remain constant They do not change and describe the business's financial scenario In contrast, variable costs keep changing