Question

. Choose a real or made up example of a company, and describe at least three variable costs the company has

Answer 1

Dominos is a company that has many variable costs. Some examples include flour, cheese, and tomatoes.

Explanation:

Answer 2

A variable cost is a corporate expense that changes in proportion to production output.

Step-by-step explanation:

Absorption costing includes all costs, including fixed costs, related to production, while variable costing only includes the variable costs directly incurred in production. Companies that use variable costing keep fixed-cost operating expenses separate from production costs.

Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.