Product Variable Costs
Step 2
Product Variable Costs
Product Cost Inputs
Add product details, labor, pricing method, supplies, and monthly units to feed the profit analysis.
Examples of variable costs by product
Variable costs are tied to each product or service unit. In this profit flow, focus on direct labor plus the supplies used to make one unit, such as materials, ingredients, packaging, labels, wax, fragrance, jars or boxes. If you sell a service, the time required to deliver it can also be treated as a variable cost. Tracking these numbers by product helps you understand gross profit before fixed costs are paid and keeps the final business profit analysis consistent.