variable cost

Also found in: Dictionary, Acronyms, Encyclopedia, Wikipedia.
Related to variable cost: Semi variable 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 ?
All appropriations are subject to reprogramming thresholds in accordance with the applicable congressional appropriation act(s) and those thresholds further determine the limits of variable cost.
Finally, we add up each type of per-unit cost to get the total variable cost for each unit we make.
In a reply to Dran's original contribution, Long (1992) showed that there was no a priori fixed-in-proportion economic relationship between increases in fixed operating expenses and commensurate reductions in unit variable cost sufficient to maintain the prior breakeven output.
A new LOS, no matter how good its workflow engine, can't achieve variable costs unless the lender is willing to change its business practices.
We assume salary to behave like a variable cost when the division leaves the group, since the group will no longer be paying this as a fixed cost.
A profit improvement algorithm is needed to measure the amount by which railroads can mark up their prices above variable cost in the face of changing market conditions.
Estimates of the fixed and variable cost changes by industry are shown in Table 1.
This represents an annual variable cost savings of $1.
The determination was that Bremer didn't take into account the overhead costs on a fixed and variable cost basis over the whole plant as well as by department.

Full browser ?