™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Variable Cost means. If we can be of more help explaining what Variable Cost is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657(888-55Books)™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Variable Cost means:

A cost is defined as variable, if it is a cost that changes per the volume of production.The opposite of this would be a fixed cost, which is constant and does not change as a result of production levels.

For example, a company’s rent would be considered a fixed cost, while material used in their products would be variable. For economic analysis, these two designations are quite valuable.

To break even, the revenue less variable costs must equal fixed costs. In financial planning, it is important to compare the economic implications of strategies with different fixed-and-variable-cost components.

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