variable cost

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Related to Total variable costs: Total fixed costs

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 ?
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).
The Gross margin is therefore considered a good proxy of profitability in farms where intercropping is practiced because it uses only the total variable cost in the estimations.
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.
The overall contribution margin is total sales minus total variable costs.
However, despite a lower per transaction cost, total variable costs may increase if IB, either through more transactions per customer or more customers, results in a significant increase in the total number of transactions.
That percentage is multiplied by the total variable costs for the MSO.
This is seen in both fixed and variable costs - 74% variation exists between total variable costs, 104% between total fixed costs, and the highest variation is in replacement costs (114%).
You have been asked to provide calculations of total variable costs for a contract for one of its products, based on the following alternative situations:
The laboratory supervisor has determined that the total fixed costs for this test system are $300 and the total variable costs are $1 per test.
Crop enterprise budget with addition of precision farming technology Returns: (price/yield/acreage) Yield Price Acres Total Returns Variable Costs: Data costs (Grid sampling, mapping, remote sensing) Fertilizer/lime material costs Fertilizer/lime application fees Pesticide material costs Pesticide application fees Total Variable Costs Fixed costs: Depreciation Interest on Investment Development of management human capital Total Fixed costs Profit Returns: (price/yield/acreage) Constant, increase or decrease Constant or increasing Constant or decrease Total Returns ?
Changes in variable costs resulting from the reform are less dramatic, mainly because of the dominance of wages within total variable costs.