Variable costs are expenses that change in proportion to the activity of a business.[1] Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs.
Variable cost
A cost that is directly proportional to the volume of output produced. When production is zero, the variable cost is equal to zero. A variable is a cost of producing the product which a company sells.
variable cost
A cost or expense where the total changes in proportion to changes in volume or activity.
Variable costs
Costs that change in proportion to sales are variable costs. Common variable costs include raw materials, shipping and depletion.
Variable Costing
Pricing products and services for profit
What is Variable Costing?
Variable Cost:
Variable cost 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.
Variable costing 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 costing - Related Articles
Marginal Cost
Calculations
Marginal cost is based on the economic theory that the more goods are produced, the lower will be the per-unit cost.
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.
Average variable cost
Definition: The average variable cost is the total variable cost divided by output.
AVERAGE VARIABLE COST
Cost determined by dividing total variable cost by the number of units of output.
COMMUNITY PROPERTY STATE ...
variable cost - Costs that fluctuate in direct proportion to the volume of units produced.
Variable costing
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) ...
Variable cost - A cost that varies with output levels.
Variable costing - Is a costing method in which the costs to be inventoriedinclude only the variable manufacturing costs.
Variable Costs. Costs that change as a direct result of a change in production volume.
Variable costs
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.
variable cost: 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.
Variable costing: A calculation of product costs that includes all direct manufacturing costs and variable manufacturing overhead, but not fixed manufacturing overhead.
Variable Costs. 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.
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Variable costs 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) ...
Direct Variable Costs: 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.
VARIABLE COSTING IN ACTION
The preceding illustration highlights a common problem faced by many businesses. Consider the plight of a typical airline. As time nears for a scheduled departure, unsold seats represent lost revenue opportunities.
Variable costs vary in direct proportion to changes in activity. Activity is often defined as a measure of volume, such as units of goods or services produced, but can be defined as many other operational variables called cost drivers.
Variable Costs - costs that changes as production changes, for example, raw materials, production labor, storage and shipping, etc.
Variable Cost
Any costs that vary with the level of production. For example, materials directly used to produce a product are variable costs. The more product produced, the more materials needed to produce the product.
Venture Capital ...
Variable costs are those cost that variable directly with, or as a result of changes in volume. The variable costs are shown marked with a "V" in the left column; fixed costs are marked with an "F". Royalties earned from sales are a variable cost.
Variable Cost-Plus Pricing
A pricing method in which the selling price is established by adding a markup to total variable costs.
Variable Cost
A cost that varies in proportion to the quantity produced. Theoretically, variable costs are zero if there is no production. As opposed to fixed cost.
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.
Semi-Variable Cost
Series 6
Société d'Investissement à Capital Variable - SICAV
Tactical Asset Allocation
Variable Cost ...
step variable costs The variable costs which change dramatically at certain points because they... step-down lease A lease providing for specified rent decreases at certain future dates. Opposite of step-up lease.
Variable cost
The portion of a firm or industry's cost that changes with output, in contrast to fixed cost.
Variable levy
A tax on imports that varies over time so as to stabilize the domestic price of the imported good.
Break Even= Sales - Variable Costs - Fixed Costs
Example of Break Even ...
Contribution: a term used in marginal costing - the difference between sale price and associated variable costs.
If the railroad has a shipper who has no good alternative means of moving his product, the railroad cannot charge more than 180 percent of variable costs.
This is a much better situation, since no rationale competitor will price below its variable costs. Therefore the price competition tends to be less severe. I believe mortgage lending is an example.
The ratio of a company's fixed assets to variable costs is called operational leverage (also known as operational gearing). For example, if a small firm has sales revenue of £1,000,000, fixed costs of £800,000 (e.g.
If a manager using an incremental approach to pricing a managed care contract considers the liquid contents and the depreciation expense of the system as the only variable costs, he or she might conclude that a substantial discount can be offered, ...
The process involves examining cost drivers and classifying them as either fixed or variable costs. The cost accountant then uses the company’s data to figure out the estimated variable cost per cost-driver unit or fixed cost per period.
2.
If Beginning Inventory = Ending Inventory, then Absorption Costing = Variable Costing
If Inventory Levels = Low, then Variable Costing Profit > Absorption Costing Profit ...
Break-even analysis finds this by dividing total fixed costs by per unit contribution to fixed costs (unit price - unit variable cost). Dollar value is calculated by multiplying break-even point by price per unit.
HIGH-LOW METHOD - an algebraic procedure used to separate a semi-variable cost into the variable and fi...
HIGH-LTV EQUITY LOAN - A home equity loan that creates a total loan-to-value ratio of up to 125 percent...
The point at which sales equal costs; the point is located by beakeven analysis, which determines the volume of sales at which fixed and variable costs are covered.
Company costs such as interest charges, insurance and rent, which do not vary with the level of production or sales. Variable Costs such as raw materials and labour do change with the level of production or sales.
In this article, we will theorize about depreciation and pricing. There will be no mention about maintenance or other variable costs.
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EzineArticles.com ...
The difference between variable revenue and variable cost.
Control
50% of the outstanding votes plus one vote.
Service Fee
Usually a monthly fee levied to cover bank cost of administering & maintaining the loan account i.e. fixed and variable costs such as staff, IT software / hardware.
Contribution margin
The difference between variable revenue and variable cost.
Control
50% of the outstanding votes plus one vote.
A numerical and graphical technique that is used to determine at what point the firm will break even (a point of zero profit or loss). To compute the break-even point, divide fixed costs by price minus variable cost per unit.
Variable Cost
A producers cost that varies as production varies, in contrast to fixed costs. Rent is an example of a fixed cost and raw materials of a var...(Read more)
Variable Interest Rate ...
The nominal arrangements are that the processor contracts for the tender to perform services over a certain geographical location for a specified number of days. The tender will be paid for fuel and other variable costs associated with the ...
A mathematical method for analyzing the relationships among a firms fixed costs, profits, and variable costs to calculate the costs of running a business.
AIB (10th Edition)
Bricks-and-mortar business ...
 See also: Expense, Fixed cost, Variable costs, Fixed costs, Job
  
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