![]() Production Supplies: The necessary tools and supplies which vary with the production level like machinery oils.Commissions: In business, to motivate the salespersons, the company pays a commission on them on the sold products.It can be due to overtime of work or temporary hiring. Billable Staff Wages: Sometimes, the company does pay wages on the billable hours.For the permanent workers, it will be listed as a fixed cost. It is the variable cost when the workers are on a temporary contract which depends on the production volume. Direct Labor: The wages paid to the workers as per the amount of the unit production.Direct Material: The raw material that the product contains itself.All the costs which vary with the units of product produced will be listed as variable costs. Variable cost includes the costs which change by the amount of production. ![]()
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