variable cost
Definition
A cost of labor, material or overhead that changes according to the change in the volume of production units. Combined with fixed costs, variable costs make up the total cost of production. While the total variable cost changes with increased production, the total fixed costs stays the same.
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Related Terms
fixed cost, break-even analysis
'variable cost
' appears in the definitions of these terms on BusinessDictionary.commarginal pricing, contribution analysis, direct cost, shutdown point, average variable cost, and
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