Variable Cost: Definition, Formula and Calculation

variable cost  Examples of variable costs · Production Supplies Production supplies, such as machinery oil, are consumed based on the amount of machinery Understand variable cost in business Learn the definition of variable cost, the variable cost

Variable costs are those that are affected by manufacturing output or sales The variable cost of production is a fixed sum per unit manufactured These costs Understanding Variable Cost The total expenses incurred by any business consist of Variable and Fixed Costs Variable coss are dependent on production output

The average variable cost, or “variable cost per unit,” equals the total variable costs incurred by a company divided by the total output ( the number of rate to cover the cost of new borrowing and the cost of interest paid on deposits A variable rate mortgage would be most beneficial to the operative