Variable Costs

From Virbus

Changing costs that are, in contrast to fixed costs, dependent on company activities. There are other aspects besides company activities that can account for the variability of variable costs. Variable costs can be divided into proportional, digressive, progressive, and regressive costs (see illustration). As a rule itemized costs, esp. material itemized costs as well as wages directly related to plant activities (e.g. piece-wages and machine costs) belong to variable costs.