A(n) variable cost is one whose total amount changes in direct proportion to a change in volume.
Variable costs are costs incurred when the number of goods or services produced by business 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.
Variable costs are costs that vary in proportion to production or sales. Variable costs increase as production or sales increase. Variable costs decrease when output or sales decrease.
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