Variable Cost are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm produces.
The accounting phrase "variable cost" is used when estimating a company's production costs. In order to sustain productivity and profitability, it is crucial to identify the variable operational costs. This page defines variable cost, offers a list of examples, formulas for calculating variable cost per unit and total variable cost, and defines variable cost.
A production expense known as a variable cost can go up or down in response to shifts in a company's manufacturing activities. For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
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