variable costs are costs involved with the production of goods and services and it is measured in relation to the quantity of goods or service provided. example of such costs include the cost involved with the purchase of raw materials and the cost involved with the payment of labor used in production. variable cost is generally regarded as the cost incurred during production of goods and services by a company.
to calculate/find variable cost you will divide the total variable costs incurred by the volume of the goods produced, variable costs and fixed cost make up total expenses made by a company,
while fixed cost is time related variable cost is goods/services related