What are Examples of Variable Costs?

Variable costs and fixed costs, in economics, are the two main types of costs that a company incurs when producing goods and services. Variable costs vary with the amount of output produced, and fixed costs remain the same no matter how much a company produces.

Fixed cost changes in per unit. On the other hand, variable cost remains constant in per unit. Examples of fixed cost are rent, tax, salary, depreciation, fees, duties, insurance, etc. Examples of variable cost are packing expenses, freight, material consumed, wages, etc.

• Direct materials. The most purely variable cost of all, these are the raw materials that go into a product.
• Piece rate labor.
• Production supplies.
• Billable staff wages.
• Commissions.
• Credit card fees.
• Freight out.

Variable expenses are costs that change over time, such as groceries or movie tickets. Because these costs might fluctuate over a week, month or year, it can be challenging to pinpoint what you’ll spend.

Definition: A flexible budget, also called a variable budget, is financial plan of estimated revenues and expenses based on the current actual amount of output. Management often uses flexible budgets before a period to predict both a best case and worse case scenario for the upcoming accounting period.

Based on conditions prevailing, a budget can be classified into 2 types; Basic Budget, and. Current Budget.

Whereas fixed budgeted express that individual costs should be at one specified volume, variable budgets are cost schedules that show how each cost should vary as the level of activity or output varies. …

Variable assets, on the other hand, refer to equipment, inventory and accounts receivable. The accounts receivable refers to those current assets that report the amount of money that the customers owe the business for the services or goods that have been provided on credit terms.

Key Takeaways. An asset is something containing economic value and/or future benefit. An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent. Personal assets may include a house, car, investments, artwork, or home goods.

Guide to making a list of personal assets

1. Choose your recording system. You can keep your list digitally or on paper.
2. List physical and financial assets.
3. Include personal information.
4. Include detail descriptions of assets.
5. Attach evidence of ownership.
6. Double check your insurer requirements.
7. Tips for safeguarding your list.
8. Update your list.

Examples of personal characteristic assets include:

• Great smile.
• Ability to get along with many different personalities.
• Positive attitude.
• Sense of humor.
• Great communicator.
• Excellent public speaker.

14 Examples of Capital Investment

• Land & Buildings. The purchase of land and buildings for your business.
• Construction. Any costs that go into constructing a building or structure is a capital investment.
• Landscaping. Productive changes to land such as an irrigation system for a farm.
• Improvements.
• Furniture & Fixtures.
• Infrastructure.
• Machines.
• Computing.

Capital includes the cash and other financial assets held by an individual or business, and is the total of all financial resources used to leverage growth and build financial stability. Raw materials used in manufacturing are not considered capital. Some examples are: company cars.