Question
I'm thinking about What is a specific, real-life example of (just) one variable cost today for the owners of a specific business firm that you
I'm thinking about What is a specific, "real-life" example of (just) one variable cost today for the owners of a specific business firm that you are familiar with, here in the United States?
One of my classmates posted.
Variable costs are costs that change as the quantity of the good or service business produces changes. As examples, material costs, transportation costs can be variable costs. As a company make more and more products, its variable costs become larger and larger. In contrast, as they make fewer products, its variable costs become smaller.
A specific example is Coach which is an American luxury design house. They are producing purses, luggage, accessories and ready-to-wear, and they use cloth, leather, and metals to produce their products. These materials can be included as variable costs for Coach. As Coach makes products, the variable costs become large. Therefore, they grasp their own variable costs to make management plans and business plans based on supply and demand.
In this post,
I want to know the difference between a fixed cost and a variable cost of production for a business firm in the short run.
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