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.

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 ?
Those who have not yet thrown in the towel generally decide to address their challenge in one of three ways: Do nothing, discount goods and services and or trim variable expenses or restructure their fixed expenses.
Hence, an expenditure whose benefit extends beyond one year is still seen as a variable expense in this example.
All we need to do is to build into the system a capacity to distinguish between the two types of variable expense just discussed--the time-variable expenses, as they might be called, and the output-variable expenses.
Management must then focus primarily on budgeting and controlling variable expenses.
15 reduction in the variable expense of a towel plus a five-minute reduction in service time plus a $1 hike in the fee increases the contribution margin per hour of a wet cut from $13.
In addition, because eGistics DMP solution is built on the company's hosted document management platform, it requires no capital investment and offers a variable expense, "pay-as-you-go" pricing model.
PSA's Direct Marketing Production Management model continues to provide organizations with best-in-class capabilities on a variable expense basis.
5 million primarily due to higher variable expenses associated with our internet net sales (i.
Based on marginal profit, an internal profit measure that strips out fixed costs and some variable expenses, Cobee said the cars will make money from day one.
Reasonably minimise variable expenses in daily life such as food, electricity and water consumption, etc.
The price of oil shale electricity is hard to be reduced, because variable expenses exceed the anticipated long-term market price, and millions of EUROs have to be expended to remove slag heaps and clean the groundwater and air.
It can be difficult to predict accurately some variable expenses such as entertainment.

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