How to Calculate Variable Cost with Formula and Examples

Variable costs are expenses that change in proportion to the production output or the level of business activity

Cost is something that can be classified in several ways depending on its nature One of the most popular methods is classification according

fixed cost 1 Production cost · Materials to produce the shoes: $10,000 · Direct labor to manufacture the shoes: $13,000 · Additional materials: $$2,000

cost of goods sold Variable cost examples · Cost of raw materials Perhaps these are the largest variable cost of most businesses · Direct labor costs