Variable Cost Examples

Here are some examples of variable costs and their cost drivers in different types of industry. It is important to note what the cost driver is and how it affects the expense.

Industry	Cost	Cost Driver
Manufacturing	Direct Materials	Number of units produced
Law Firm	Payroll	Number of hours
Airline	Fuel	Number of miles flow
Hotel	Housekeeping costs	Number of rooms occupied
Tire Factory	Rubber	Number of rubber used
Country Club	Food cost	Number of members