30/06/2025
The cost that changes with the change in output of a production is called variable cost.
For Example
Suppose that You have a shoe factory and it takes 10 workers to make 100 pairs of shoes per day. Now you want to make 200 pairs of shoes per day, then you need 15 workers.
If per labour wage =&10
To make 100 pairs of shoes= 10 ร$10=$100 wages.
When production increases from 100 to 200, labour also increases 10 to 15.
Wages = 15 ร$10= $150
When production increases, labour cost also increases.
So,here wages variable cost.
