Variable costs in a manufacturing business are costs that change based on the level of production. These costs increase or decrease as production levels change, so they are not fixed. Some examples of variable costs in a manufacturing business include raw materials, direct labor, energy consumption, packaging materials, and transportation costs.

Raw materials are the basic materials used to manufacture a product, and the cost of these materials is directly related to the number of products produced. Direct labor refers to the wages paid to the workers who are involved in the production process, such as machine operators or assembly line workers. Energy consumption is a variable cost because the more a company produces, the more energy is required to run the machinery. Packaging materials and transportation costs are also variable costs because they increase or decrease as the number of products produced changes.

In order to manage variable costs, a manufacturing business should strive to increase efficiency and reduce waste in the production process. This can help to keep costs low and improve profitability.

In a manufacturing business, variable costs are expenses that fluctuate based on production levels. Common examples include:

1. Raw Materials: The primary ingredients or components needed to produce goods, like steel for cars or flour for baked goods. Costs rise as production increases.

2. Direct Labor: Wages paid to workers directly involved in production, such as assembly line operators, which vary with output levels.

3. Utility Costs: Electricity, gas, and water usage often increase as machines operate longer to meet production demands.

4. Packaging Supplies: Costs for materials like boxes, labels, or protective wraps that vary with the number of units produced.

5. Shipping and Freight: Expenses to deliver goods to customers, which grow with sales volume.

Managing these costs effectively helps maximize profitability as production scales.