Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output.
Fixed costs may include lease and rental payments, insurance, and interest payments.
Variable costs are costs that change when the number of goods or services produced by a firm changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense.
Fixed and variable costs form the two components of the total cost. Direct costs are costs that can be easily assigned to a specific cost object. However, not all variable costs are direct costs.
For example, variable manufacturing overhead is a variable cost that is an overhead rather than a direct cost. Variable costs are sometimes called unit costs because they vary with the number of units produced.
learn more about variable costs here. https://brainly.com/question/5965421
#SPJ4
