Variable Costs
Content
Definition
Variable Costs are expenses that change in proportion to the activity or volume of a business.
Usage and Context
Variable costs change directly with the level of business activity or volume.
Frequently asked questions
- Do variable costs per unit change in proportion to changes in volume of activity? Yes, variable costs per unit change directly with the level of activity or production volume.
- What are expenses that change in proportion to the activity of a business? Expenses that change in proportion to the activity of a business are called variable costs.
- Do variable costs change with volume? Yes, variable costs change directly with the level of activity or production.
Benefits
Variable costs change with business activity levels, affecting budgeting and pricing strategies.
Conclusion
Variable costs change with business activity levels, affecting budgeting and pricing decisions.
