Variable Expenses
A variable expense is a cost that changes from one month to the next, so it is harder to predict when you plan your spending. Groceries often change with what you buy and how many people you are feeding. Gas changes with how much you drive. Gift shopping can be high in one month and absent in another.
When money is tight, these are the expenses you can reduce right away, because you decide how much to buy. For a business, materials work the same way: the cost rises when the business makes more and falls when it makes less.
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