Variable costs are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs.
A cost that is directly proportional to the volume of output produced. When production is zero, the is equal to zero. A variable is a cost of producing the product which a company sells.
Costs that change in proportion to sales are variable costs. Common variable costs include raw materials, shipping and depletion.
A cost or expense where the total changes in proportion to changes in volume or activity.
By F. John Reh
Definition: Variable Costs are expenses that vary based on production volumes. They include material, labor, production utilities, etc.
is an operating expense, or operating expenses as a class, that varies directly, sometimes proportionately, with sales or production, facility, utilization, or other measure of activity.
accounting system treating variable and fixed costs differently the accounting system in which variable costs are charged to cost units and fixed costs of the period are written off in full against the aggregate ...
ing is used for internal management only. Its uses include: (1) inventory valuation and income determination; (2) relevant cost analysis; (3) break-even analysis and Cost-Volume-Profit (CVP) Analysis ; and (4) short-term decision-making.
Variable Costs = Total Costs - Fixed Costs
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s refers to the constantly changing cost of labor or raw materials influenced by the volume of production or internal company decisions.
Variable Cost The expenses that vary proportionately with the level of production activities or volume of output of any business. Examples include materials, electricity, and lubricants.
Fixed, s and break-even
The break-even point of a business is the level of output or sales at which the revenue received by the business is exactly equal to the cost of making (or selling) that output.
Average variable cost
Definition: The average variable cost is the total variable cost divided by output.
Cost determined by dividing total by the number of units of output.
COMMUNITY PROPERTY STATE ...
Dictionary Finance P Price Variable Cost Margin
Finance Dictionary - P Terms
- Costs that fluctuate in direct proportion to the volume of units produced.
Variable Cost A type of cost, where the change in cost is proportional to the change in the company's production. A zero production equals a zero variable cost.
Business / Finance / : Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. MORE
A method of costing in which only variable production costs are treated as product costs and in which all fixed (production and non-production) costs are treated as period costs.
activity based costing (ABC) ...
s. Costs that change as a direct result of a change in production volume.
Part of a firm's production costs that changes according to how much OUTPUT it produces. Contrast with FIXED COSTS. Examples include some purchases of raw materials and workers' overtime payments.
: a cost of production that is directly proportional to the number of units produced
variable interest rate: an interest rate that changes, usually in relation to a standard index, during the period of the loan ...
Variable costs - production costs that change when the level of production changes, so that when more is produced the costs increase; as opposed to fixed costs.
- A cost that varies with output levels.
ing - Is a costing method in which the costs to be inventoriedinclude only the variable manufacturing costs.
Variable costing: A calculation of product costs that includes all direct manufacturing costs and variable manufacturing overhead, but not fixed manufacturing overhead.
s. Costs that change in direct proportion to the amount of product manufactured. For example, the cost of direct materials depends on the number of units produced. Contrast with Fixed Costs.
Variable Cost: Any costs which change significantly with the level of output. The obvious example is cost of materials.
s Costs that vary with the rate of production. They include wages paid to workers and purchases of materials.
Vertical merger The joining of a firm with another to which it sells an output or from which it buys an input.
variable costs costs of production that vary with the quantity of production. (6, 8)
velocity a measure of how fast money is turned over in the economy: Velocity equals nominal GDP divided by the money supply. (24) ...
A financial indicator defined as current assets less current liabilities. If negative, it is a need, for cash resources to fund the normal activities of short-term.
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A variable cost varies in direct proportion to changes in an activity index. Mathematically, we portray the activity index as an independent variable, while total cost is considered the dependent variable.
Direct s: costs that fluctuate with the operations of the railway. Such costs would include fuel, train crew, traffic cost, yard & terminal cost, rolling stock and infrastructure maintenance.
VARIABLE COST: In general, cost that changes with changes in the quantity of output produced.
See also: Index, Fixed cost, Expense, Transaction, Variable costs