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2. Variable costs change with production. However, total variable costs and per unit varia behave differently. Total variable costs change variable cost remains total
2. Variable costs change with production. However, total variable costs and per unit varia behave differently. Total variable costs change variable cost remains total variable cost with changes in production with changes in production, meaning when productio , and when production decreases, total variable costs This is directly opposite of total and per unit fixed costs. Examples of variable costs are sal commissions, direct labor, direct materials. The change based on the number of units the sales, the number of hours worked by the factory workers, and the amount of material us production.
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