Fixed vs Variable Costs: What's the Difference

variable cost  Variable costs are those that are affected by manufacturing output or sales The variable cost of production is a fixed sum per unit manufactured These costs The formula for variable costs is: total quantity of output X variable cost per unit of output = variable cost A business would need to find this data for a

Other articles where variable cost is discussed: accounting: Cost finding: …variable costing represents the average variable cost of making the product  Variable costs mean expenses that are affected by the changes in production and sales If a company increases sales, it will increase production

cost of ending inventory Variable Costing Example As Illustration 19A-5 shows, companies use the cost-volume-profit format in preparing a variable costing Fixed costs remain constant They do not change and describe the business's financial scenario In contrast, variable costs keep changing