Difference between revisions of "Variable costs"
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| − | 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]]. |
| − | [[ | + | Combined with fixed costs, variable costs make up the total cost of production. |
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| + | == External links == | ||
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| + | *[http://www.investorwords.com/5221/variable_cost.html Variable cost] BusinessDictionary.com | ||
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| + | [[Category:Economics]] | ||
Latest revision as of 21:19, July 13, 2016
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.
Combined with fixed costs, variable costs make up the total cost of production.
External links
- Variable cost BusinessDictionary.com