Variable costs are those that repeat as the project progresses, such as the cost of writing code.
What is variable cost ?
- A variable cost is an cost that changes in extent to generation yield or sales. When generation or deals increment, variable costs increment; when generation or deals diminish, variable costs decrease.
- Variable costs stand in differentiate to settled costs, which don't alter in extent to generation or deals volume.
- Variable costs are a central portion in deciding a product's commitment edge, the metric utilized to decide a company's break-even or target benefit level.
- Examples of variable costs incorporate crude materials, labor, utilities, commission, or conveyance costs.
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