Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs.
Secondly, what is fixed expenses and variable expenses? Fixed expenses cost the same amount each month and are usually paid on a regular basis. One example of a fixed expense is rent. Variable expenses can change based on the day, week or month. For instance, medical costs can be categorized as a variable expense.
Correspondingly, what are considered variable expenses?
Variable expenses, also called variable costs, are expenses that can change over time. Variable expenses differ from fixed expenses, such as your mortgage or rent, that remain the same throughout the term of your loan or lease.
What are the 3 types of expenses?
There are three major types of expenses we all pay: fixed, variable, and periodic.