Variable cost refers to the cost of producing or providing goods or services that is directly related to production or sales, and it varies with the change in production or sales volume.
The following are common ways to calculate variable costs:
1.Direct material variable costs
Direct material variable costs are costs that are directly related to the amount of raw materials used in the manufacturing of a product.
Calculation method: direct material unit cost Production quantity Sales quantity.
For example, a company uses 1,000 pieces of raw materials in the production process, and the cost of each piece of raw materials is 10 yuan. If the company produces 500 products and sells 400 pieces, the direct material variable cost is: $10 500 400 = 12$5.
2.Direct Labor Variable Costs
Direct labor variable costs are costs that are directly related to the amount of direct labor used.
Calculation Method: Direct Labor Unit Cost Production Hours Sales Hours.
For example, a company uses 200 man-hours in the production process, and the cost of each man-hour is 20 yuan. If the company produces 300 products and sells 250, the direct labor variable cost is: $20 300 250 = $24.
3.Direct Variable Costs
Direct expense variable cost is a cost that is directly related to the amount of direct expense used, such as electricity consumption, fuel consumption, etc.
Calculation method: direct expense unit cost Production quantity Sales quantity.
For example, a company uses 100 kilowatt-hours of electricity in the production process, and the cost of each kilowatt-hour is 1 yuan. If the company produces 200 products and sells 150, the variable cost of direct expenses is: 1 yuan 200 150 = 133 yuan.
It should be noted that the above are just some basic calculations, and the actual situation may be more complicated. When calculating variable costs, there are other factors to consider, such as overhead allocation, fixed costs, etc. In addition, the characteristics of specific industries and companies also affect the calculation of variable costs.