Variable cost

Variable cost is something that changes depending on how much we use it. For example, if we want to make some cupcakes, we need some ingredients like flour, sugar, and eggs. We can buy these ingredients at the store, and the cost will depend on how many cupcakes we want to make. If we want to make more cupcakes, we'll need to buy more ingredients, and the cost will go up.

So variable costs are things that change based on how much we use them, like ingredients to make cupcakes. If we want more, we have to pay more, and if we want less, we pay less. It's like buying candy at the store - if we want more, we'll need to pay more money, but if we only want a little bit, we won't have to pay as much.