Question

Define Variable Cost?

Answer 1

Its a cost which varies with the level of output.Its both increased and decreased according to the companies volume when there more or high production its increased and decreased when production isn't good or in fall.

Ex:raw materials, packaging etc.

You can find variable cost through dividing the sales by the price per unit to get the number of units produced.

The total variable cost of producing an item will typically include the cost of raw materials and Labour used in this process.