Variable cost (labor cost) variable cost refers to the portion of the cost that increases or decreases proportionately with the change in product output or the volume of commodity turnover, such as raw material costs, packaging costs, and transportation costs. Most of the variable expenses are direct expenses, but the raw materials used in the production of joint products are allocated to the cost of each joint product according to a certain standard, and thus are indirect costs rather than direct costs. Note: The same raw material produces two or more products with greater economic value through a certain production process, which is called co-product.

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