+**Variable Cost** refers to an expense that changes in direct proportion to the volume of [Production](/wiki/production) activity. These outlays, such as raw materials and direct labor, fluctuate—rising as more is made and falling when less is produced, unlike a [Fixed Cost](/wiki/fixed_cost).
+## See also
+- [Fixed Cost](/wiki/fixed_cost)
+- [Marginal Cost](/wiki/marginal_cost)
+- [Revenue](/wiki/revenue)
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