Yes, a real-world example of how changes in volume of activity can significantly impact a company's total variable cost is the airline industry. When an airline increases its number of flights, it incurs more fuel costs, which are variable costs. Similarly, if the airline decreases its number of flights, it will incur less fuel costs. Another example is the manufacturing industry. If a company produces more units of a product, it will need more raw materials, which are a variable cost. Conversely, if it produces fewer units, it will need less raw materials.
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