< Back to Glossary

Variable cost

A variable cost is a type of cost that varies in proportion to the volume of goods or services produced. This means that as the volume of production increases, the variable cost also increases, and vice versa. Examples of variable costs include the cost of raw materials and labor. Fixed costs, on the other hand, are costs that remain constant regardless of the volume of production, such as rent and insurance.

Revolutionize Your Accounting with Finanshels
Book Free Consultation
Bader Al Kazemiquote
"If you ever do any financial modeling/forecasting, I seriously can't recommend Finanshels enough. they are a dependable team of professionals who work hard to deliver results."
Bader Al Kazemi
Founder, Optimize App
Restaurants Accounting
The Restaurant Business An Accounting Guide

The Restaurant Business An Accounting Guide

Get Free Guide