Definitions for "VARIABLE EXPENSES"
are those business costs that usually fluctuate dependent upon manufacturing or sales volume.
Operating expenses that vary with the volume of business. For example, shipping supplies increase as the volume of items sold increases. See also direct cost.
As used in the Income Approach -- Those variable operational costs which remain inconsistent in the operation of an income-producing property. Variable expenses are used in conjunction with an operating income statement, an essential document in the appraisal of residential income-producing properties.