Variable Cost financial definition of Variable Cost. Variable Cost finance term by the Free Online Dictionary.

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.

Variable Cost

What Does Variable Cost Mean?

A cost that changes in proportion to a change in a company's activity or business.

Investopedia explains Variable Cost

A good example of a variable cost is fuel for an airline. This cost changes with the number of flights and how long the trips are.

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Absorption Costing Break-Even Analysis Break-Even Equation Breakeven Analysis Contribution Margin Cost Costo variable Custo variavel Dumping Fixed Cost Gasto vario Leverage Ratio operating leverage Operating Margin Semi-Variable Cost variable expenses	lt;p>Bid buckets and end-user discounts are practices allegedly used by Intel to subsidize sales of its chips, charging less for them than the variable cost of producing them. Antitrust battle will go on despite AMD-Intel settlement by Network World Middle East Sources of Information (1) The Unit Price less Unit Variable Cost is called Contribution because it represents the amount that can be contributed toward fixed costs by each unit sold after the variable costs are deducted from the sales price. Break-even analysis--making it work for your franchise: break-even ... by Reilly, Chris / Franchising World Sales and Variable Costs When projected sales decreases during a recessionary period, production levels need to drop proportionally. Keeping profits up in a down economy by Pinkus, Hugh / Financial Executive	Value-Added Monthly Index Value-Added Tax Value-Adding Cost Value-at-Risk Model Value-Based Pricing Valued Basis Valued Clause Valued Marine Policy Valued Policy Valued Policy Law Values-Based Corporation Valuta VAMI Vancouver Stock Exchange Vandalism Endorsement vanilla building Vanilla Issue Vanilla Option Vantage comparative Vaporware VaR Varejo Variable Variable Annuities Variable Annuity Variable Cost Variable Coupon Renewable Note Variable Death Benefit Variable economica Variable economica de seguimiento Variable endogena Variable endogene Variable exogena Variable Exogene variable expenses Variable ficticia variable interest rate Variable Levy Variable Life Insurance Variable Life Insurance Policy variable maturity mortgage Variable muette variable payment plan Variable Plan Variable Price Limit Variable Rated Demand Bond Variable Ratio Option Writing Variable Ratio Write Variable-Price Security Variable-rate Variable-Rate CDs	Variable Cash Incentive Program variable ceiling Variable Center Distance Variable character Variable Charge Y Variable Chip Rate Variable Chip Rate, Frequency Shifted variable click track Variable Coding and Modulation Variable coefficient Variable Combo Variable compression ratio Variable Conductance Heat Pipe Variable Connectivity Distributed Routing Network variable connector Variable Constellation Multitone Variable Contract Variable Contrast Variable Contrast Acuity Profile Variable Contrast Constant Exposure Variable Contribution Margin Variable Control Relay Module Variable Control Voice Actuator Variable Cornea Compensator Variable Cost Variable Cost Productivity Variable Cost Revenue Ratio Variable costs Variable costs Variable costs Variable costs Variable costs variable coupling variable coupon renewable note variable coupon renewable note variable coupon renewable note Variable Coupon Renewable Notes Variable Crystal Oscillator Variable Curvature Coordinate Variable Cycle Engine Variable Cylinder Management variable d variable d variable d Variable Data Exchange Variable Data Field Variable Data Layout Engine Variable data printing Variable data printing Variable Data Publishing Variable Data Table Variable Death Benefit Variable Death Benefits variable deceleration variable deceleration

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Absorption Costing
Break-Even Analysis
Break-Even Equation
Breakeven Analysis
Contribution Margin
Cost
Costo variable
Custo variavel
Dumping
Fixed Cost
Gasto vario
Leverage Ratio
operating leverage
Operating Margin
Semi-Variable Cost
variable expenses

lt;p>Bid buckets and end-user discounts are practices allegedly used by Intel to subsidize sales of its chips, charging less for them than the variable cost of producing them.

Antitrust battle will go on despite AMD-Intel settlement by Network World Middle East

Sources of Information (1) The Unit Price less Unit Variable Cost is called Contribution because it represents the amount that can be contributed toward fixed costs by each unit sold after the variable costs are deducted from the sales price.

Break-even analysis--making it work for your franchise: break-even ... by Reilly, Chris / Franchising World

Sales and Variable Costs When projected sales decreases during a recessionary period, production levels need to drop proportionally.

Keeping profits up in a down economy by Pinkus, Hugh / Financial Executive

Value-Added Monthly Index