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5 March, 13:29

This is the expense for a good or product that changes in proportion to the activity of the company.

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  1. 5 March, 15:22
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    Variable costs

    Explanation:

    Variable costs are those that vary with the level of activity of the company. For example, raw materials are a variable cost. If you sell 10 units at $1 per unit, the variable cost is $10. If you sell 15 units it's $15. Fixed cost remains the same regardless of the number of units sold.
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