Section 5: Variable Costs

These costs are not associated with generating revenue seen in the cost of sales but do vary based on changes in sales or output.

Examples include:

  • Commission payments
  • Marketing / advertising
  • Utilities

These costs can have an indirect way of driving sales.


  • Marketing costs should have an impact on the sales for the business at this period.
  • You may offer commission payments to help drive performance, you would expect this to increase in line with sales.