variable costs


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Related to variable costs: direct costs, Semi Variable Costs

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.
References in periodicals archive ?
"This claim is also supported by the fact that, although raspberries, strawberries and pears have the highest variable costs, the same types of fruits also have the highest net revenues and therefore the highest profitability," he said.
Direct fixed cost includes depreciation of equipment and utilities, such as electricity and water use, while variable costs include salaries of personnel, cost of supplies and materials.
To further enhance this analysis, a Monte Carlo simulation may be employed to estimate variable costs.
The second step is to correctly define the terms "fixed" and "variable." A misleading rule of thumb that is often wrongly used to define these terms says variable costs are avoidable and fixed costs are unavoidable.
There are various factors which determine the organization's composition of fixed and variable costs. Few of such factors are the level of business risk, revenue generation and the degree of operating leverage .
Costs included in the variable costs of initial livestock costs, drug and vaccine costs, mortality, transportation costs, labor costs, accommodation costs and other costs.
The issue of what constitutes variable costs in a retailer is of concern when calculating breakeven.
The former of these alleged improprieties, as well as the payment of bribes to secure franchises, might be thought of as primarily redistributive rather than allocative, and are not inconsistent with minimizing variable costs. One of the chief complaints of Carman (1918) in his survey of New York City franchise awards is that the companies paid little or nothing to the government for the franchise, echoing similar sentiments expressed by the muckraking journalist Myers (1900).
Roques [10] illustrate, through a simple net present value model of three base load technologies (coal, gas, and nuclear plants), how Monte Carlo simulation can capture the impact of a wide range of uncertainties and risks, such as energy prices, fixed and variable costs, discount rate etc.
Established in 2012, Great Annual Savings Group works with businesses across many sectors to reduce their variable costs and save money in a range of areas including energy procurement, energy and water cost management, fire safety, telecoms and insurance.
Studying variable costs at the level of the study sample and comparing the cost items of both farming methods in Sharkia Governorate indicates that total variable cost under terrace farming averaged LE 3058 compared to LE 2790 under traditional farming (Table 2).
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