variable cost

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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.
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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Other operator decisions that could improve profitability included (in descending order of relative impact on profitability) decreasing total variable costs, decreasing share of land ownership, and decreasing labor expenses.
Studying variable costs at the level of the study sample and comparing the cost items of both farming methods in Sharkia Governorate indicates that total variable cost under terrace farming averaged LE 3058 compared to LE 2790 under traditional farming (Table 2).
Cost and returns analysis Cost item variables Amount (N) Cost of transportation 240.93 Cost of labour 128.16 Cost of live cattle 3,962.70 Total variable costs 4,331.79 Total revenue 53,280.00 Source: Field survey (2010) Table 3.
It accounted for nearly half of the total variable costs. This shows that the crop is labour-intensive.
The result reveals that Ofada rice production is quite proitable and it was also shown that labour cost accounted for 75.5 percent of the total variable costs. This shows that it is laborious.
Total variable cost (TVC) was calculated as the sum of all cost that is variable or specific to specific treatment in this case the cost of KCl was used.
After all, it can be accomplished with just three data elements: Actual or Projected Sales, Total Fixed Costs, and Total Variable Costs. It also allows you to model the effects of various scenarios on the breakeven point.
Total variable costs (CVT) correspond to COpVT plus the alternative costs for the variable factors; similarly, total fixed costs (CFT) correspond to COpFT plus the alternative costs derived from the fixed factors.
That percentage is multiplied by the total variable costs for the MSO.