The variable expense that can change a great deal at different times of a year is <u>heating and cooling cost</u>.
Cooling and heating services are a variable cost because they are subject to climatic conditions. They are unpredictable and people don’t use these services the same way throughout the year.
<h2>Further Explanation</h2>
Also, the cost of heating services in the winter season will likely be high compared to the summer season and the same goes for cooling services.
Variable expense refers to an expense that can change with regards to how much an individual uses a product or service. It is also known as a variable cost.
For example: a variable cost could change if the market value of the variable expense is unstable or fluctuate in the whole year.
If a company is into the production of ketchup, therefore to produce ketchup, the company will need tomatoes as part of the materials; this also implies that tomatoes are the company’s variable expense.
The prices of tomatoes during the growing season will be a lot cheaper when compared to the winter period.
The period of the year, when plant and other crops grow easily is known as the growing season
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KEYWORDS:
- variable expense
- variable cost
- great deal
- different times a year
- change
