Final answer:
Sales commissions and raw materials are variable costs, as they vary with the level of production or output.
Step-by-step explanation:
Sales commissions and raw materials are indeed examples of variable costs, which are expenses that vary directly with the level of production or output. Variable costs increase or decrease based on the company's activity; more production typically requires more raw materials and potentially higher sales commissions due to increased sales. These costs stand in contrast to fixed costs, which remain constant regardless of the level of production. A barber shop, for example, would have fixed costs such as rent and equipment, while the cost of hiring barbers would be variable, as it depends on the quantity of haircuts performed.