Definition: Costs that you incur for each unit you produce.
Example: The costs of materials to produce one more unit are variable costs.
Why It’s Important: You need to know your variable costs to set pricing and calculate profitability.
Definition: Costs that you incur for each unit you produce.
Example: The costs of materials to produce one more unit are variable costs.
Why It’s Important: You need to know your variable costs to set pricing and calculate profitability.