macboudr4810 macboudr4810
  • 26-03-2020
  • Business
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Are costs that are incurred for every unit of volume. Total variable costs change in direct proportion to changes in volume.

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eyukwe
eyukwe eyukwe
  • 30-03-2020

Answer:

Variable cost increases for each new unit of volume produced. Hence as new products are produced the variable cost increases.

Explanation:

Unlike the fixed cost which is constant, e.g land; the variable cost changes and are not constant for each new unit of volume. Examples of variable cost includes, sales commission cost. We also have the mixed cost, which is a combination of fixed cost and variable cost.

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