{"id":31317,"date":"2018-10-30T07:18:05","date_gmt":"2018-10-30T05:18:05","guid":{"rendered":"https:\/\/www.edenred.es\/?p=10991"},"modified":"2025-02-12T12:18:45","modified_gmt":"2025-02-12T11:18:45","slug":"el-impacto-de-los-costes-variables-de-una-empresa-en-sus-resultados","status":"publish","type":"post","link":"https:\/\/www.edenred.es\/en\/blog\/el-impacto-de-los-costes-variables-de-una-empresa-en-sus-resultados\/","title":{"rendered":"The impact of a company's variable costs on its bottom line"},"content":{"rendered":"

A company's variable costs are expenses that vary in proportion to the quantity of goods or services it produces.<\/b>. In other words, these are costs that are set according to the volume of activity.<\/span><\/p>\n\n\n\n

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How do a company's variable costs work?<\/b><\/h2>\n\n\n\n

A company's variable costs increase as the volume of activities increases and decrease as the volume of activities decreases.<\/b>, The value of a company's fabric is directly related to the amount of value that is created. If the company manufactures jeans, the more jeans it produces, the more fabric it needs. Raw materials, usage-based services and hourly workers are all variable costs.<\/span><\/p>\n\n\n\n

Reductions in fixed costs are cumulative, while reductions in variable costs are amplified by volume.<\/b>. If you manage to save 10 euros per month on your phone bill, the savings add up to 120 euros at the end of the year. However, when you save 0.50 euros on every cowboy produced, for every 1,000 produced, you are saving 500 euros.<\/span><\/p>\n\n\n\n

The better the understanding of costs, the more likely it is that ways can be found to produce the greatest possible value without spending such a large percentage of the profit from the sale.<\/span><\/p>\n\n\n\n

What are the most common variable costs of a company?<\/b><\/h2>\n\n\n\n

Clearly, the answer will depend on the type of business and the particular company, however, <\/span>The most common variable costs of a company include the following:<\/b><\/p>\n\n\n\n