Mention any two features of variable cost.

Variable cost refers to costs that vary directly with the level of production or sales activity. Two key features of variable cost are:

1. Direct Variation with Output: Variable costs change in direct proportion to changes in the volume of production or sales. For example, if production doubles, the variable cost (such as raw materials or direct labor) also doubles. This relationship is linear, meaning the cost per unit remains constant regardless of production volume.

2. Zero Cost at Zero Production: Variable costs are zero when there is no production or sales activity. Unlike fixed costs, which remain constant regardless of production levels, variable costs disappear entirely when operations cease. This feature highlights their dependency on operational activity.