variable cost

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Related to Total variable cost: Total fixed cost

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.

Variable Cost

A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost. On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. This is a variable cost.

variable cost

The costs of production that vary directly in proportion to the number of units produced. Variable costs often include labor expenses and raw material costs, because labor and raw material usually must be increased to increase output. Firms for which variable costs represent a high proportion of total costs are usually less likely to experience large fluctuations in earnings, because changes in sales and revenues are accompanied by nearly equal changes in costs. Compare fixed cost.
References in periodicals archive ?
Total variable cost comprised cost of material inputs, energy inputs and other expenditure.
Turning now to another matter, in the special case of a firm operating at its shut-down point, the optimal mark-up/mark-down, respectively, will result in the firm being just able to cover its Total Variable Cost (TVC); a graphical description of these similar situations is offered in Figures 1a and 1b.
Studying the production costs of intercropped tomatoes and wheat indicates that total variable cost at the level of Fayoum Governorate amounted to LE 9203, of which harvesting cost represents 38.
The total variable cost (TVC) is the sum of all monetary costs while the net profit is the gross profit less imputed cost of own inputs.
Glazner of the Colorado School of Public Health, Aurora, and her colleagues found that the total variable cost per vaccination averaged $11.
are defined in terms of short run average total cost (SATC) which includes both average total variable cost and average total fixed cost.
This action does not affect total revenues, but increases total variable cost by $83,379 (26,724 * $3.
23 per patient day in total variable cost per patient day in the TABULAR DATA OMITTED TABULAR DATA OMITTED TABULAR DATA OMITTED first year following implementation of the prospective payment system |$8.