variable cost

[Indhumathi v]

Let’s assume XYZ company has received an order for 5,000 widgets for a total sales price of $5,000 and wants to determine the gross profit that will be generated by completing the order, first the variable cost per widgets must be determined.

[karthikarun]

A variable cost is a corporate expense that varies with production output. Variable costs are those costs that very depending on a company’s production volume.

Variable cost differ from fixed cost such as rent, advertising,  insurance and office supplies.

1. Fixed cost and variable cost comprise total cost.

[Mounika]

Variable cost are corporate expenses that vary in direct proportion to the quantity of output

Total variablecost = Total quantify of output×variable cost per unit of output

Usage ;
<p style=”text-align: center;”>Drop in variable cost has helped to lift profit margin</p>

[Hari priya]

A variable cost is a cost that varies in relation to changes in the volume of activity. This concept can be used to the future financial performance of a business, as well as to set a minimum price points.

Eg: Credit card fees, where a fee is not incurred unless a customer uses a credit card to pay for a purchase.

[boutha priya]

Variable costs are costs that change in proportion to the good or service that a business produces.

Variable costs are also the sum of marginal costs over all units produced. They can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost.

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