Variable costs are costs resulting from the ongoing evolution and use of a system.

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Variable costs are costs that change based on usage or production levels, not the ongoing evolution and use of a system. Examples of variable costs include raw materials, labor costs, and shipping expenses. Fixed costs, on the other hand, are costs that remain the same regardless of usage or production levels, such as rent and salaries.

Variable Costs Are Costs Resulting from the Ongoing Evolution and Use