average variable cost
a measure of cost control, calculated by dividing the total variable cost of the goods produced by the number of units sold ...
Variable Costs - costs that vary directly with the volume or quantity produced; variable costs plus fixed costs equal total costs. See Fixed Costs; Total Costs.
Variable Costs: [var] Variable costs refer to the costs that are associated directly with the number of units of product that are produced. For example, the materials used in making a product are considered variable costs of a product.
Incremental-Cost Pricing an approach in which the price of all additional units produced after the fixed costs of production have been met are based on variable cost rather than on total cost.
Variable Costs - These costs are directly associated with the production and sales of products and, consequently, may change as the level of production or sales changes.
Definition: Price is based on a product's total fixed and variable costs.
Example: Typical pricing in commodity markets. For example, a commodity-type raw product such as steel is priced using a standard formula based on cost.
The remaining 3p’s are the variable cost for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix.
Contribution per unit can be defined as selling price less variable costs. Overall contribution is the difference between total sales revenues and variable costs
Core product ...
contribution margin - The difference between the total revenue generated by a product or brand and its total variable costs.
 See also: Marketing, Variable, Market, Product, Company
  
|
RSS
