# Variable Costs

**IRI:** https://folio.openlegalstandard.org/R8vomNaX2Wv8mWmUp4WBk3n

## Labels

## Definition

Variable costs are expenses that change in direct proportion to the level of goods or services that a business produces. Examples include raw materials, direct labor, subcontractor fees, and shipping costs, which increase or decrease as production volumes change. This metric is important for scalability analysis.

## Sub Class Of

- https://folio.openlegalstandard.org/RTHm2BxeaziDbm5655G1ki

**Deprecated:** False