Answer :
Bella's monthly variable expenses reach 8000$, which covers the price of fabric and thread, energy, and salaries.
What is a variable cost and an illustration?
Costs that change as the volume increases are known as variable costs. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The price of goods sold is the name given to the variable costs of production in some accounting statements.
What are fixed and variable costs?
The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are examples of variable cost.
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