Definition: A variable factor is a factor of production whose quantity can be varied in the short run. We would normally expect labour and raw materials to be variable factors.
Related glossary term: ...
Variable factor - An input that can be varied by any desired amount in the short run.
VARIABLE FACTOR OF PRODUCTION: An input whose quantity can be changed in the time period under consideration.
VARIABLE FACTORY OVERHEAD VARIANCES
The cost behavior for variable factory overhead is not unlike direct material and direct labor, and the variance analysis is quite similar.
(That is, first the marginal returns to successive small increases in the variable factor of production turn down, and then eventually the overall average returns per unit of the variable input start decreasing.) Since the law assumes that the ...
Marginal physical product The physical output that is due to the addition of one more unit of a variable factor of production; the change in total product occurring when a variable input is increased and all other inputs are held constant; ...
Applied factory overhead and budgeted factory overhead?
Five bases of factory overhead?
Budgeted variable factory overhead?
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The optimum level of a sound procurement policy is to ensure that the least optimum level of costs and are enhanced so that there effective competitive advantage in terms of product pricing. There is a need to look at variable factors that exist ...
See also: Expense, Index, Marginal cost, Inputs, National income