31. The model works best in industries that have low variable cost of production or inventory. 32. The level of variable cost is influenced by many factors, such as fixed cost, discount rate. 33. For example, variable manufacturing overhead costs are variable costs that are indirect costs, not direct costs. 34. However, not all variable costs are direct costs. 35. The cost of material is a variable cost . 36. Variable costs are fixed on a percentage basis.37. Variable costs are sometimes called unit-level costs as they vary with the number of units produced.38. The economy will have to incur more variable costs , such as overtime, to produce the unit. 39. Variable costs as a percentage of sales are equal to 100 % minus the contribution margin ratio.40. Every year, PNC offsets the swans'variable cost by calculating a core index that excludes such cost anomalies.
