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Variable Cost

Variable Cost

What is a 'Variable Cost'

A variable cost is a corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output. Fixed costs and variable costs comprise total cost.

Explaining 'Variable Cost'

Variable costs can include direct material costs or direct labor costs necessary to complete a certain project. For example, a company may have variable costs associated with the packaging of one of its products. As the company moves more of this product, the costs for packaging will increase. Conversely, when fewer of these products are sold the costs for packaging will consequently decrease.


Further Reading

Are there economies of scale in underwriting fees? Evidence of rising external financing costsAre there economies of scale in underwriting fees? Evidence of rising external financing costs
academic.oup.com [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Economics of fish production in Kaduna State NigeriaEconomics of fish production in Kaduna State Nigeria
agris.fao.org [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Empirical research in transaction cost economics: challenges, progress, directionsEmpirical research in transaction cost economics: challenges, progress, directions
link.springer.com [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

An empirical comparison of published replication research in accounting, economics, finance, management, and marketingAn empirical comparison of published replication research in accounting, economics, finance, management, and marketing
www.sciencedirect.com [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Interpreting risk allocation mechanism in public–private partnership projects: an empirical study in a transaction cost economics perspectiveInterpreting risk allocation mechanism in public–private partnership projects: an empirical study in a transaction cost economics perspective
www.tandfonline.com [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Empirical research in transaction cost economics: a review and assessmentEmpirical research in transaction cost economics: a review and assessment
www.jstor.org [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Trends in the Costs of Weapon Systems and the ConsequencesTrends in the Costs of Weapon Systems and the Consequences
www.tandfonline.com [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …

Transaction cost economics: An assessment of empirical research in the social sciencesTransaction cost economics: An assessment of empirical research in the social sciences
www.cambridge.org [PDF]
… His research and writing has emphasized production economics topics including risk, multi-period problems, and … To place your order and obtain shipping costs call 1-800-724-0025 or e … 4.1.d Variable Cost Flexibility 4.1.e Geometry of Cost Functions 4.2 Revenue Functions 4.3 …


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