Variable costs.
Variable costs.
Variable costs.
Expenses that increase as production grows are known as variable costs. These include costs such as raw materials, direct labor, and utilities that are directly tied to the level of production output. As production ramps up, the need for more materials and labor intensifies, leading to higher total costs. In contrast, fixed costs remain constant regardless of production levels, such as rent or salaries for permanent staff.
Direct expenses increase or decrease based on the rate of production. For example raw material costs increase as more products are made.
Variable expenses are those expenses which vary according to production level while fixed expenses are those expenses which have no effect of production level and remain same.
yes- cars, bigger clothes, college, more expensive electronics lol sounds morbid
The factors of production become cheaper thus causing decreased production expenses and ultimately greater margins of profit. Simply put, strategic outsourcing allows one to increase margins of profit.
Any expense which is varying with levels of production is a variable expense. For example, with more production, expenses on raw materials will also increase. Consumption of raw material , thus , is a variable expense.
no
General and administrative expenses are those expenses which requires to run day to day business activities no matter if there is production going on or not.
Grows
increase