Cost of Goods Sold
Freight & Shipping
Incentives & Bonuses
NotesCost of goods sold is the cost of your inventory that has been sold. In many cases, most variable costs can be attributed to this measure.An easy way to think of variable costs is anything that can easily be cut in a recession or a cost that increases due to improved sales.Workforce reductions are the costs to layoff employees. This can be contrasted with outsourcing contracts that allow you to reduce costs without penalty.Cloud computing is a class of software, telecommunications and IT infrastructure services that allow you to scale up and down with demand.Utilities are customarily listed as a fixed cost despite the fact that these can be highly variable.
|Overview: Variable Costs
Business expenditures that change in proportion to the level of goods or services that a firm produces.
Business expenditures that change with sales volumes, production volumes or tactical initiatives such as an advertising campaign.