Variable costs are those that do not change in proportion to the level of production and include raw materials,direct labor,and the salaries of factory supervisors.

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Variable costs are costs that do change in proportion to the level of production. Examples of variable costs include direct materials and direct labor, which increase as production increases. Salaries of factory supervisors would be considered a fixed cost, as they do not vary with production levels.

Variable Costs Are Those That Do Not Change in Proportion