Fixed vs Variable Costs: What's the Difference

variable cost  Variable costs are expenses that change in proportion to the production output or the level of business activity  Variable costs associated with the production of goods or services include the cost of raw materials, labour costs, staff welfare costs, and

Cost is something that can be classified in several ways depending on its nature One of the most popular methods is classification according  Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount

How to Calculate Variable Cost With Formula and Examples · Total output quantity x variable cost of each output unit = total variable cost Examples of variable costs · Production Supplies Production supplies, such as machinery oil, are consumed based on the amount of machinery