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Variable costs include indirect overhead costs such as cell phone services, computer supplies, credit card processing, electrical use, express mail, janitorial supplies, MRO, office products, payroll services, telecom, uniforms, utilities, waste disposal, etc. Semi-variable costs, the expenses necessary to keep the business in proper condition.
Average cost In economics, average cost (AC) or unit cost is equal to total cost (TC) divided by the number of units of a good produced (the output Q): Average cost is an important factor in determining how businesses will choose to price their products.
In economics, average variable cost (AVC) is a firm's variable costs (VC; labour, electricity, etc.) divided by the quantity of output produced (Q): Average variable cost plus average fixed cost equals average total cost (ATC): A firm would choose to shut down if the price of its output is below average variable cost at the profit-maximizing level of output (or, more generally if it sells …
Cost curve In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms optimize their production process by minimizing cost consistent with each possible level of …
Variable cost Total Costs disaggregated as Fixed Costs plus Variable Costs. The quantity of output is measured on the horizontal axis. Variable costs are costs that change as the quantity of the good or service that a business produces changes. [1] Variable costs are the sum of marginal costs over all units produced.
Railway costing is the calculation of the variable and fixed costs of rail movements. Variable costs are those that increase or decrease with changes in the traffic volumes or service levels and include fuel, maintenance and train crew costs, for example.
The marginal cost can also be calculated by finding the derivative of total cost or variable cost. Either of these derivatives work because the total cost includes variable cost and fixed cost, but fixed cost is a constant with a derivative of 0. The total cost of producing a specific level of output is the cost of all the factors of production.
Variable costing (Redirected from Variable Costing) An example of an income statement using variable and absorption costing Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced.
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