Difference between revisions of "Variable costs"
Jump to navigation
Jump to search
Masterbratac (talk | contribs) m (bolding title, rm misplaced commas) |
Lukecorlando (talk | contribs) |
||
| Line 1: | Line 1: | ||
| − | '''Variable costs''' are | + | '''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]]. |
[[category:economics]] | [[category:economics]] | ||
Revision as of 02:13, November 15, 2007
Variable costs are expenses 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.