What is Variable Cost?

variable cost  Definition of Variable Cost A variable cost is a constant amount per unit produced or used Therefore, the total amount of the variable cost will change Fixed costs are normally independent of a company's specific business activities Variable costs increase as production rises and decrease as production falls

The variable cost is the portion of total cost that varies with output Total cost is composed of both fixed and variable costs Variable costs increase or Other articles where variable cost is discussed: accounting: Cost finding: …variable costing represents the average variable cost of making the product

Variable cost examples · Cost of raw materials Perhaps these are the largest variable cost of most businesses · Direct labor costs  Semi-variable costs are less common than fixed and variable costs, and will differ from industry to industry Nevertheless, typical semi-variable costs include