Question: What are variable costs? They are a cost or expense where the total changes in proportion to changes in volume or activity. For example, if

What are variable costs? They are a cost or expense where the total changes in proportion to changes in volume or activity. For example, if a company pays a sales commission on all of its sales, commission expense is a variable expense because commissions increase in total as sales increase and decrease in total as sales decrease. The cost of flour is a variable cost for the baker of artisan breads. Any other examples?

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