Variable Cost: Definition, Examples, Formulas and Importance

Variable Cost: Definition, Examples, Formulas and Importance variable cost Variable costing Variable costing is a managerial accounting cost concept Under this method, manufacturing overhead is incurred in the period that a product variable cost Variable costs are those that are affected by manufacturing output or sales The variable cost of production is a fixed sum per unit manufactured These costs

variable cost Variable costs are costs that change as the quantity of the good or service that a business produces changes Variable costs are the sum of marginal costs

cost of goods sold A variable cost is an ongoing business expense that is subject to change directly based on how much of product is made or sold If the total Understanding Variable Cost The total expenses incurred by any business consist of Variable and Fixed Costs Variable coss are dependent on production output