Variable Costs

Variable costs are expenses that fluctuate based on your volume of business. They include: shipping, commissions, supplies, hourly wages https://getsling.com/blog/business-terms/

Refer to the expenses that a company incurs that vary with changes in its level of production or sales. These costs are directly related to the company’s output or activity, such as the cost of materials, hourly wages, sales commissions, and shipping fees. Variable costs can be managed by adjusting production levels or sales strategies, which can impact a company’s profitability and break-even point. Understanding and managing variable costs is an important part of financial planning and can help businesses maintain competitiveness and profitability.

An example of variable costs in business coaching could be the cost of materials used during coaching sessions, such as handouts, workbooks, or other resources that are specific to each client. Another example could be the cost of any online tools or software that are used to manage client data or schedule appointments. These costs vary based on the number of clients a coach has and the specific needs of each client, and can be adjusted as needed to maintain profitability.

Variable Costs DEFINITION:

1. Business costs that fluctuate in relation to changes in production or sales volume. 2. Costs that vary with the level of activity, such as raw materials, labor, and utilities.

Variable Costs QUOTE:

1."Variable costs: the ultimate mystery in accounting, just like why the coffee machine always runs out on Mondays." 2."Variable costs: The only thing constant is the uncertainty of how much money you'll lose."