{"id":4113,"date":"2023-03-08T21:48:36","date_gmt":"2023-03-08T21:48:36","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/variable-cost\/"},"modified":"2023-03-08T21:48:36","modified_gmt":"2023-03-08T21:48:36","slug":"variable-cost","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/variable-cost\/","title":{"rendered":"Variable Cost"},"content":{"rendered":"<p>\nA Variable Cost is a cost or corporate expense which varies or changes as per the company\u2019s production or sales volume.<br \/>\nThis can increase or decrease as per company&#8217;s production and demand. Variable costs are more relevant for manufacturing and production companies, but can be applicable across businesses, adding to the overall expense structure of a company.<\/p>\n<h2>Examples of Variable Cost<\/h2>\n<p>For a company engaged in manufacturing of goods, the cost of raw materials and packaging will increase if the demand increases and consequently production is increased.<br \/>\nSimilarly, shipping expenses for a wholesale or retail business will increase or decrease as per the sales.<\/p>\n<h2>Importance of Variable Costs<\/h2>\n<p>1. Variable Cost is used to assess expenses, margins, pricing, and profitability.<br \/>\n2. Variable Costs are included in calculation of total costs of a company, in addition to fixed costs.<br \/>\n3. Variable costs are an integral part of budgeting and planning for any businesses\u2019 success.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A Variable Cost is a cost or corporate expense which varies or changes as per the company\u2019s production or sales volume. This can increase or decrease as per company&#8217;s production and demand. Variable costs are more relevant for manufacturing and production companies, but can be applicable across businesses, adding to the overall expense structure of [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-4113","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4113"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4113\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}