what is variable cost definition?

Answer 1

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).



Variable costs are expenses that change in direct proportion to the activity of a business. Along with fixed costs, variable costs make up the two components of total cost. Direct Costs, however, are costs that can be associated with a particular cost object. Not all variable costs are direct costs, however; for example, variable manufacturing overhead costs are variable costs that are not a direct costs, but indirect costs.

Answer 2

Variable Cost Definition

Answer 3

Variable cost is a cost that will vary as a firm produces one extra unit. For example, if fixed cost is $5 per unit, then no matter how may extra unit you produce, there will be $5 charge for each unit produced. But variable cost would differ. It could start out as low as $2 and move up to whatever number. In a short run, fixed cost exist, but as it reaches a long run, fixed cost becomes variable cost as well giving more flexibility to the firm.

Answer 4

Variable cost refers to goods and/or services that people will pay for regardless of price flucuation, such as coffee, cigarettes, and gas. There are very few products that have variable cost across an entire market. Some products meet the criteria for individuals, depending on how badly you want/need a particualr good or service. Even though I lumped gasoline into the variable category, there is a school of thought that believes gas prices have a limit, but it has yet to be reached. That can be said for all other goods, as well, though, so take it for what it is.

Answer 5

In a business, expenses that you can change that will effect the amount of production. Raw materials, labour, utilities, etc.

That compared to fixed costs, that will be the same no matter how much you produce. The cost of the land and factory, rents, property taxes, insurance, installed machinery.

Answer 6

coffee and cigs