Variable costs are defined as costs that fluctuate in direct proportion to changes in the level of production or sales volume. These costs include expenses such as raw materials, direct labor, and utilities, which increase or decrease based on the business activity. Unlike fixed costs, variable costs are not constant and can significantly impact a company’s profitability and pricing strategies. Understanding variable costs is crucial for effective budgeting and cost management.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
