1. Money
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Variable Expense

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Definition:

Variable expenses are those business expenses which vary depending on the volume of business, sales, or the volume of transactions.

Examples of variable expenses include:

  • postage and shipping for customer purchases
  • raw materials
  • inventory of products to be sold
  • hourly wages for producing products
  • utilities in production areas
  • sales commissions
Also Known As: Variable Cost
Examples:
The pay of a sales person might include a fixed portion (the base salary) plus a variable portion (the commissions on sales).

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