What is a Variable Cost? Definition, Example and Calculation

variable cost 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

Variable costs are costs that vary in direct proportion to production volume; they rise as production increases and fall as production decreases  variable cost Variable cost is a business expense which is subject to change when sales volumes change This could mean that variable costs either increase or decrease