Variable Cost are cost that are dependent on the number of units sold.
An example of variable cost would be the cost of materials used to manufacture a shoe. Another example in the service side of business would be the cost of gas that a carpet cleaning company uses per job.
A corporate cost that shifts with creation yield. Variable expenses are those expenses that shift relying upon an organization's generation volume; they climb as creation expands and fall as creation declines. Variable expenses contrast from altered expenses, for example, rent, promoting, protection and office supplies, which have a tendency to continue as before paying little heed to creation yield. Settled expenses and variable expenses involve aggregate expense.
Variable expenses can incorporate direct material expenses or direct work costs important to finish a certain task. For instance, an organization may have variable expenses connected with the bundling of one of its items. As the organization moves a greater amount of this item, the expenses for bundling will increment. On the other hand, when less of these items are sold the expenses for bundling will hence diminish.