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variable costs

   Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Wikipedia 0.01 sec.
variable costs [′ver·ē·ə·bəl ′kȯsts]
(industrial engineering)
Costs which vary directly with the number of units produced; direct labor and material are examples.


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Variable costs refer to the marginal cost of producing a chip, excluding capital investments and other fixed costs.
As its name implies, break-even analysis calculates the unit or dollar sales needed to generate revenues that exactly match fixed and variable costs to produce net profit of zero.
Sales and Variable Costs When projected sales decreases during a recessionary period, production levels need to drop proportionally.
 
 
 
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