What are examples of Variable Cost?

AnswerVariable costs change in relation to (and generally in proportion to) sales.

Examples include:

Chlorine costs for a pool-service company. (More pools serviced = more revenues = more chlorine bought).

The cost of nails for a building contractor. (More houses sold = more nails bought).

The cost of temporary labor for a temporary staffing company. (More temps placed = more temps hired and paid.)

The cost of paper for a printing company. (More jobs printed = more paper used)

The cost of beef for a restaurant. (You get the idea).

Costs will increase per production

if there are no production, then there are no costs

therefore any 'materials' is an example