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"variable" costs in terms of "avoidable" vs. "unavoidable" costs. Variable costs are avoidable, but some fixed costs are more unavoidable than others. Again, when presented with real-life costing data from a firm of reasonable complexity, it may not be possible to easily figure out which costs are (un)avoidable by just "looking at the data." Hence, it may be necessary to again come up with some analytical procedure to apply to the data. We discussed one such procedure (but there are other ways of doing it too) in terms of computing ratios of burden rates in a time-series fashion. There is again no GAAP-rule that tells you what to do ...
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