What is variable cost

1.	What is variable cost
Answer» Variable cost refers to those cist which vary(changed) directly with the level of output.<br>Variable costs vary directly with output – when output is zero, variable costs will be zero but as production increases, total variable costs will rise.Examples of variable costs include the costs of raw materials and components, packaging and distribution costs, the wages of part-time staff or employees paid by the hour, the costs of electricity and gas and the depreciation of capital inputs due to wear and tear.

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