The variable overhead is one which tends to vary directly with volume of output. The variable cost increases in direct proportion with the increase in production, and decrease in production. It is known as Direct cost.
Salesman’s Commission; Discounts to customers; Bad debts; Branch expenses; Postage; Stationery; Travelling; Salesman’s expenses; Packing charges; Carriage outward; Variable expenses on delivery vans; etc.
It means that a part of the expenses does not change while the other part of the same expense charges with volume of output. Generally, on costs are truly fixed or truly variable.
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019