Difference between revisions of "Variable costs"

Revision as of 12:17, August 27, 2011

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-'''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]].
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-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]]