Fixed Costs, Variable Costs, and Volume

variable cost  Here, the variable cost is the unpredictable amount of transaction fees each month as opposed to a fixed monthly fee For example, a company may A variable cost is an expense that changes in proportion to production or sales volume

Understanding Variable Cost The total expenses incurred by any business consist of Variable and Fixed Costs Variable coss are dependent on production output An employee's salary would be considered a fixed cost, while sales commissions are variable While fixed costs do change over a long-term period, this change

1 Production cost · Materials to produce the shoes: $10,000 · Direct labor to manufacture the shoes: $13,000 · Additional materials: $$2,000 Fixed expenses are often time-related, such as your monthly office lease payment Variable expenses are often volume-related, such as the amount