Answer :
Variable costs are the costs that are incurred to build factories and assembly plants vary with the quantity of output produced
An expense for the company that varies according to how much is produced or sold is called a variable cost. Depending on a company's production or sales volume, variable costs rise or fall. They rise as production rises and fall as production declines.
But not all variable costs are related to direct expenses. For instance, variable overhead costs in manufacturing are variable expenses that are indirect costs rather than direct costs. Because they change depending on how many units are produced, variable costs are also known as unit-level costs.
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