What is variable omkostninger (variable costs)?

In short

Variable omkostninger are costs that rise and fall with sales — cost of goods, materials, freight, transaction fees. Sell nothing, and they are close to zero.

In practice

The split between variable and fixed costs drives contribution accounting: revenue minus variable costs gives the contribution margin, which must cover fixed costs before any profit remains.

Related terms

• Faste omkostninger (fixed costs)
• Dækningsbidrag (contribution margin)
• Omsætning (revenue)
• See every term in the dictionary

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