Is Glue and screws the variable costs in a furniture company?
In general, yes, they would be – along with wood or aluminum, upholstery if that is the kind of furniture you make. Think of it this way if your whole company in a year made 1 chair – how much material would you need to get it done. If you then got an order for 100 chairs, you would have to buy more material to build those chairs. Whatever you had to buy to build the chairs is a variable cost. It varys based on orders.
