Home  Term of the Day | ||||
| variable cost A cost of labor, material or overhead that changes according to the change in the volume of production units. Combined with fixed costs, variable costs make up the total cost of production. While the total variable cost changes with increased production, the total fixed costs stays the same. | ||||
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| Usage Example A variable cost in manufacturing would be labor, which will increase when product demand increases, and will decrease when demand decreases. | ||||
Term of the Day
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