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How to find the variable costs

How to find the variable costs

The value of the variable costs is proportional to the volume of output. The opposite is the direct variable costs, giving a total of total costs.

When you stop the production, the amount of costs was reduced by the number of variable costs.



IFRS standards require to take into account two types ofvariable costs: production direct and indirect variable costs. The direct variable costs take those costs, the cost of which is directly transferred to the cost of goods, products and services. The indirect variable costs - costs that do not affect the cost of production, but directly connected with the production. Indirect variable costs is inappropriate to directly deduct the cost of production.


All costs associated with the acquisition of raw materials,materials, equipment for the manufacture of a product, electricity, fuel costs, operating personnel costs, directly related to the production to take direct variable costs in production.


Costs in the production of complex processingmaterials, raw materials, sleep on indirect costs. Examples of such processing costs may be coal from which the gas, coke and other products- and the processing of milk produced by the separation of skim milk and cream.

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