Variable costs
Costs that change in proportion to sales are variable costs. Common variable costs include raw materials, shipping and depletion.
Variable Costs or Expenses
Business Dictionary:
Variable Costs or Expenses
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variable costs
expenses that varyin totalin direct proportion to changes in activities such as machine-hours and labor-hours within a relevant range Examples are direct materials and gasoline expense based on mileage driven.
semi-variable costs
See mixed expenses.
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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 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 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 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) ...
Semi-Variable Costs The costs that vary with output though not proportionately. Examples are repairs and maintenance expenses.
Semi-variable costs: Synonymous with mixed costs.
Separable costs: Costs incurred by joint products after the split-off point.
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 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 costs are also subject to adjustment. In the electronic parts example, it was illustrated how such costs can vary based on quantities ordered. Perhaps one might order and store large quantities of the part for use in future periods.
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 costs expressed as a percentage of sales. The variable cost ratio compares costs, which fluctuate depending on production levels, to the revenues made on those products. This ratio relates the specific costs to the revenues they generate.
Average variable costs (AVC) - Total variable cost divided by the number of units produced.
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.
In practice, the variable costs and controllable fixed costs would be listed in detail, with separate variances computed for each cost.
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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.
The break-even analysis is a standard financial analysis that measures general risk for a company by showing the sales level needed to cover both fixed and 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.
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.
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.
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, ...
method allocating overhead costs to product an accounting practice in which fixed and variable costs of production are absorbed by different cost centers.
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.
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Definition: Total costs. Costs are made up of fixed costs and variable costs. The total of the fixed and variable costs is the total cost. Total costs can also be split into direct and indirect costs.
Related glossary term:
Total cost curve ...
The difference between sales and variable costs; the amount remaining after variable costs are paid. For example:
Sales $400,000
Variable Costs 150,000
Contribution Margin $250,000 ...
Absorption costing: An accounting practice in which fixed and variable costs of production are absorbed by different cost centers.
Abusive tax shelter: A tax shelter that somebody claims illegally to avoid or minimize tax ...
CONTRIBUTION MARGIN (CM) - is the difference between sales and the variable costs of the product or ser...
CONTRIBUTION MARGIN ANALYSIS - is a technique used in brand marketing and product management to help a ...
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.
Breakeven Analysis: A forecasting tool used by marketers that considers product price, fixed cost and variable costs in order to determine the minimum sales volume required before a company realizes a profit.
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.
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 ...
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 ...
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.
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.
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 mortgage refinance can also cause an extension in the life of a loan and/or increase existing debt. Factors to consider in a mortgage refinance include up-front fees, pre-payment penalties and ongoing variable costs.
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: Variable cost, Fixed cost, Fixed costs, Expense, Cost of goods
  
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