variable cost

An item of expenditure that, in total, varies directly with the level of activity achieved. For example, direct materials cost will tend to double if output doubles, a characteristic being that it is incurred as a constant rate per unit. In practice, there are few examples of true variable costs or true fixed costs, most costs being semi-variable costs

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • variable cost — A cost element that varies directly with the amount of product or service produced by an activity or cost. Variable costs go to zero if the activity stops. (Also see fixed cost) …   Glossary of postal terms

  • Variable cost — Decomposing Total Costs as Fixed Costs plus Variable Costs. Variable costs are expenses that change in proportion to the activity of a business.[1] Variable cost is the sum of marginal costs over all units produced. It can also be considered… …   Wikipedia

  • 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. The New York Times Financial Glossary * * * variable cost variable cost ➔ cost1 * * * variable cost UK US noun [C] …   Financial and business terms

  • 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. Bloomberg Financial Dictionary * * * variable cost variable cost ➔ cost1 * * * variable cost UK US noun [C]… …   Financial and business terms

  • variable cost — UK / US noun [countable] Word forms variable cost : singular variable cost plural variable costs business a cost that changes according to how much of a product is made …   English dictionary

  • variable cost — kintamosios sąnaudos statusas T sritis Gynyba apibrėžtis Sąnaudos, kurios tiesiogiai kinta dėl gamybos apimties ar pagamintos produkcijos kiekio. atitikmenys: angl. variable cost šaltinis NATO mokymų ir pratybų finansavimo terminų žodynas AAP… …   Lithuanian dictionary (lietuvių žodynas)

  • Variable Cost — A corporate expense that varies with production output. Variable costs are those costs that vary depending on a company s production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed… …   Investment dictionary

  • variable cost — An item of expenditure that, in total, varies directly with the level of activity achieved. For example, direct materials cost will tend to double if output doubles, a characteristic being that it is incurred as a constant rate per unit. In… …   Accounting dictionary

  • variable cost — noun A cost that changes with the change in volume of activity of an organization. Variable costs of nuclear generated electricity seem low …   Wiktionary

  • variable cost — a cost that varies with a change in the volume of output while remaining uniform on a per unit basis, as cost of labor (distinguished from fixed cost). * * * …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.