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Variable costs are those that alter as the volume changes. Variable costs include things like raw resources, piece-rate workers, production supplies, commissions, freight costs, wrapping costs, and credit card fees. In some accounting accounts, the variable costs of production are referred to as "Costs of Goods Sold."
Thus, Variable cost is the correct phrase.
What role does variable cost play?
SInce they can drastically affect how a corporation spends its money, variable costs are extremely important to a business. Variable costs may be either large (in the case of significant change) or fairly minimal, depending on the strategic objectives of your company. You'll have more money to spend in other areas if your variable expenses are modest because there won't be any unforeseen fees.
It's important to note that when looking at your company's income statement, increased costs aren't always a bad sign. It may actually signify a rise in sales, which would raise the price of producing the necessary quantity of items. In turn, this results in more money coming in over time.
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