Question

Direct material cost + Direct labor cost + Other variable costs is equal to ...............
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Answer 1

Introduction:

A variable cost is a commercial expense that fluctuates with the amount of goods or service produced or sold. Variable costs rise or fall in direct proportion to a company's production or sales volume, rising as production increases and lowering as production decreases.

Explanation:

Variable expenses include direct labour, direct materials, and variable overhead.

As a result, direct material + direct labour plus additional variable costs equals variable cost.

Answer 2

1. A variable cost is a commercial expense that varies according to the quantity of goods or services produced or sold.
2. Variable costs rise or fall in direct proportion to a company's production or sales volume, rising with increased production and falling with decreased production.
3. Direct labour, direct materials, and variable overhead are examples of variable expenses.
4. As a result, variable cost equals direct material + direct labour + additional variable costs.

Hence, Direct material cost + Direct labor cost + Other variable costs is equal to variable costs.

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