Variable Costs Definition and Example

Variable costing is an accounting method used in managerial accounting and financial modeling to analyze the profitability of products and

A variable cost is a cost that changes with the level of output or production In other words, it is a cost that increases as production increases and decreases

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

variable cost Variable costs associated with the production of goods or services include the cost of raw materials, labour costs, staff welfare costs, and