![]() She purchases windows apps tailored to the job and enrols in an online class and learn how to use them. To accomplish her profession, she leases a portable office. She needs to travel across the country for another assignment, and all of her airfare are variable costs. She hires a secretary on an annual rate to support her, and this chargeable labour is a variable cost as well. She also needs to fly to see the investor, and the taxi cost is an unpredictable price. These are all his costs that vary.Ī marketing consultant works on a variety of agreements, each with its own set of charges, she has a lot of overhead expenses. Furthermore, Johnny has officially unveiled a home delivery, and as a result, he must pay for vehicle costs maintenance, both of which are dependent on the size of call-in bookings. Nevertheless, Johnny must also purchase kitchen supplies, pay his employees’ salaries, and pay his monthly utility bills.Īll of these factors change based on the number of people who visit the diner, how many meals they purchase, and how frequently their facility is used. Johnny’s fixed expenses are his rental and taxes, which he must pay regardless of how many meals he delivers or not. Johnny runs a European eatery that specialises in rice and noodles. The company employs a representative who is paid on commissions and receives an achievement incentive. For this company, delivery costs are a significant variable cost. The average time spent varies according to the amount of business. The following variable cost examples are:Ī purchasing company must keep a modest facility and compensate contract workers.
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