What is variable cost example?

What is variable cost example?

Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions, and certain utilities (for example, electricity or gas that increases with production capacity).

What is variable cost answer?

Variable costs are the direct costs that a company incurs when producing goods or services. These costs are directly proportional to the quantity of goods or services produced. As output decreases, variable costs decrease.

What is variable cost in supply chain?

Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases.

Are taxes variable cost?

Variable costs are volume-related and change with the changes in output level. Depreciation, interest paid on capital, rent, salary, property taxes, insurance premium, etc. Commission on sales, credit card fees, wages of part-time staff, etc.

What is variable cost chemistry?

A variable cost is the expense that changes with the decrease and increase of the production output of a company. Variable costs differ with the volume of the output produced. Most of the basic variable costs are: Raw materials. Packaging.

What is variable cost Class 11?

What is a variable in supply chain management?

There are many different variables that affect SCM, but in our research we used Trade Management, Information Technology, Uncertainties, Manufacturing, Customer Satisfaction, and Performance of Supply Chain Management. All these variables are helpful for lowering the lead time of supply chain and cost.

Is logistics a variable cost?

In logistics cost analysis, we use two types of costs: fixed (or standing, capital) costs versus variable (or running, operational, recurrent) costs. Fixed costs are costs that do not vary with quantity or volume of output provided in the short run (typically, one year). These costs usually vary with time.