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Reverted edits by RebeccaWhite (talk) to last revision by [[User:Joaqu�n Mart�nez|Joaqu�n Mart�nez]]
'''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]]