What does variable cost mean?
Definitions for variable cost
vari·able cost
This dictionary definitions page includes all the possible meanings, example usage and translations of the word variable cost.
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Wiktionary
variable costnoun
A cost that changes with the change in volume of activity of an organization.
Wikidata
Variable cost
Variable costs are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Direct Costs, however, are costs that can easily be associated with a particular cost object. However, not all variable costs are direct costs. For example, variable manufacturing overhead costs are variable costs that are indirect costs, not direct costs. Variable costs are sometimes called unit-level costs as they vary with the number of units produced. Direct labor and overhead are often called conversion cost, while direct material and direct labor are often referred to as prime cost. In marketing, it is necessary to know how costs divide between variable and fixed. This distinction is crucial in forecasting the earnings generated by various changes in unit sales and thus the financial impact of proposed marketing campaigns. In a survey of nearly 200 senior marketing managers, 60 percent responded that they found the "variable and fixed costs" metric very useful.
Numerology
Chaldean Numerology
The numerical value of variable cost in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of variable cost in Pythagorean Numerology is: 1
Examples of variable cost in a Sentence
There still is a fixed cost out there no matter what you do, so the incentive is to go out there and get the variable cost covered and eat into the fixed cost.
Given the current situation, it is not enough for any startup to come up with good products and be fast to market. At least it's equally important to manage cost. Not only fixed costs but variable cost.
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"variable cost." Definitions.net. STANDS4 LLC, 2024. Web. 28 Apr. 2024. <https://www.definitions.net/definition/variable+cost>.
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