Variable cost
A variable cost is a cost that rises or falls with each unit you make or sell, such as ingredients, packaging, and payment fees.
Also known as: variable costs
Variable costs change with volume: sell one more candle or bar of soap and you spend a little more on materials, packaging, labor, fees, and delivery.
Adding up the variable cost of one unit shows how much of each sale is left to cover fixed costs. It is the starting point for setting a price you can check.