A cost that varies with changes in the quantity of output produced when other factors are held constant The cost of material handling to an activity, for example, varies according to the number of material deliveries and pickups to and from that activity
The total costs incurred to produce energy, excluding fixed costs which are incurred regardless of whether the resource is operating Variable costs usually include fuel, maintenance and labor
A cost that changes with the production quantity or the performance of services This contrasts with fixed costs that do not change with production quantity or services performed
Includes cost of merchandise, cost of returns, reply postage, order processing, credit card fee, credit check costs, customer service, fulfillment, returns, bad debt, collection effort and premiums
A cost that is directly proportional to the volume of output produced When production is zero, the variable cost is equal to zero
any costs that change significantly with the level of output eg cost of materials
A cost for material, labor or overhead that changes in a traceable and measurable way due to changes in the volume of production units or operating hours in a given period variable lead time- Lead time for a manufactured or purchased item that varies due to changes in quantity or process constraints
Costs that vary in total dollar amount based on the level of activity or production These costs increase or decrease as the volume of production rises or falls Compare this term with Fixed cost
A business cost that changes in direct response to changes in the level of operating activity Contrast with fixed cost
That cost which varies directly, or nearly directly, with the volume of activity
Refers to the portion of a utility's cost of service which varies with the volume of sales
The cost of work and materials that change according to the change in volume of the productions. The fixed costs and the variable costs together makes the total cost of the product
The cost of production of a good or service, taking into account the costs of all variable inputs but not the costs of any fixed inputs, divided by the quantity produced