What are 5 examples of variable costs?
Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the Cost of Goods Sold.
What items are included in variable costs?
Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions, and certain utilities (for example, electricity or gas that increases with production capacity).
What is all included in overhead costs?
Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.
What is not included in overhead cost?
Overhead costs are all of the costs on the company's income statement except for those that are directly related to manufacturing or selling a product, or providing a service. A potter's clay and potting wheel are not overhead costs because they are directly related to the products made.