View source for Variable costs

'''Variable costs''' are [[expense]]s that vary directly with the size of a firm's output.  As output increases over the range of [[production]], the variable costs increase.  Variable costs include raw materials, labor, fuel, and wear and tear on equipment. Costs which do not change with the size of a firm's output are [[fixed costs]].

Combined with fixed costs, variable costs make up the total cost of production. 

== External links ==

*[http://www.investorwords.com/5221/variable_cost.html Variable cost] BusinessDictionary.com

[[Category:Economics]]