Examples of variable costs for a merchandising company include cost of goods sold, direct materials, and commissions.
What is a variable cost?
A variable cost is the cost element that remains constant per unit while the total changes. Other examples of variable costs include direct labor, variable selling and administrative expenses, including commissions and shipping costs.
Thus, for a merchandising company, the cost of goods sold, direct materials, and commissions are all examples of variable costs.
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