What is the purpose of Variations in the Cost Items Database record?

What is the purpose of Variations in the Cost Items Database record?

For illustrative purposes, if there is paint and there is orange, blue, red and other kinds of paint. The color of the paint is the variation in the item. It does not affect the price but has the element of color in this specific context that is different. This is where Variations can help Cost Items Database records to have the same item have variations to choose from without affecting the price.