What are the examples of variable costing?
submitted by amos

Arnold

Amounts that when costed to an item being manufactured, for example, are not "fixed." It takes exactly a fixed number of ounces of metal to produce a car wheel. Labor may be based on regular time, overtime, or double overtime, depending on how many hours the employee has already worked.

mr peanut

Variable costs are the costs needed to produce a product. Some examples would be direct materials. If a company makes clothing, that would be the fabric, thread, buttons, etc. That would also include the labor costs paid to the people doing the sewing. Then you'd have manufacturing expenses, like electricity for running machines. Then you'd have to look at overhead for the production facility, because machinery needs repairing and maintenance.

Aside from actually building the product, you have things like sales commissions, shipping costs per unit, and advertising expenses. Those each increase with sales volume.