variable rate definition
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Fixed vs. Variable Rate Loans What is the definition of a Variable Rate Loan? Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates. They generally have lower starting interest rates than fixed rate loans, but the interest rate and payment amounts can change over time. Sometimes they are also known as floating rate loans.
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Variable, fixed and mixed (semi-variable) costs Variable cost: A cost that changes, in total dollar amount, with the change in the level of activity is called variable cost. A common example of variable cost is direct materials cost. Consider the following example to understand how variable cost behaves in a manufacturing company.
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variable costs variable costs. any COSTS that tend to vary directly with the level of output. They represent payments made for the use of variable factor-inputs, notably raw materials and direct labour. A firm will leave a market if in the short run it cannot earn sufficient SALES REVENUE to cover its total variable cost.
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What is a 'Variable Cost' Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. The formula for variable cost is given as: Total variable cost = Quantity of output x Variable cost per unit of output. Variable Cost Example For example, let’s assume that it costs a bakery $15.00 to bake a cake - $5.00 for raw materials such as sugar, milk, and flour, and $10.00 for the direct labor involved in baking 1 cake.
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Fixed vs. Variable Interest Rates Definition of Fixed and Variable Interest Rates. Fixed interest rates do not change over the life of the loan. Variable interest rates (sometimes called floating rates) may change periodically. The interest rate may reset on a monthly, quarterly or annual basis, depending on the terms of the loan.
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Average variable cost Average variable cost. In economics, average variable cost (AVC) is a firm's variable costs (labor, electricity, etc.) divided by the quantity of output produced. Variable costs are those costs which vary with output. where VC = variable cost, AVC = average variable cost, and Q = quantity of output produced. Average variable cost plus average fixed cost equals average total cost:
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variable cost The costs of production that vary directly in proportion to the number of units produced. Variable costs often include labor expenses and raw material costs, because labor and raw material usually must be increased to increase output.
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- Definition of Unit Rate. Unit Rate is the ratio of two measurements in which the second term is 1. The two measurements involved for which ratio are taken in unit rate is always different. If Nancy earns $180 in 20 hours, then unit rate of her earning is given as 180/20 = $9 per hour. A. 16 toys/hour.
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economics. fundamental finance .com Fixed costs often include rent, buildings, machinery, etc. Variable costs are costs that vary with output. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc. In accounting they also often refer to mixed costs.
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- DEFINITION of 'Variable Rate Demand Bond'. A bond with floating coupon payments that are adjusted at specific intervals. The bond is payable to the bondholder upon demand following an interest rate change. Generally, the current money market rate is what is used to set the interest rate, plus or minus a set percentage. As a result of this, the coupon payments can change over time.
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Dictionary of Banking Terms and Phrases Also known as variable-rate mortgages. The initial interest rate is usually below that of conventional fixed-rate loans. The interest rate may change over the life of the loan as market conditions change. There is typically a maximum (or ceiling) and a minimum (or floor) defined in the loan agreement.
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- n the actual cost of producing one article. variable cost. n a cost that varies directly with output. English Collins Dictionary-English Definition & Thesaurus &nbsp. See also: cost accounting, cost centre, cost rent, cost accountant. cost an arm and a leg. cost an arm and a leg. exp.
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- Related Terms: variable cost, total cost, fixed expenses. Variable cost: All other costs that are some function of activity. They are usually. considered linear because the unit cost is computed by dividing the total other costs for a. period, or event, by the amount of activity in the period. The linear assumption is a matter. of convenience. As the level of activity is varied, the non linear nature of the variable. costs are revealed.
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- Defined. Offline Version: PDF. Term average variable cost Definition: Total variable cost per unit of output, found by dividing total variable cost by the quantity of output.efined. Offline Version: PDF. Term average variable cost Definition: Total variable cost per unit of output, found by dividing total variable cost by the quantity of output.
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A Guide to Fixed and Variable Costs of Doing Business As sales go up, so do variable costs. As sales go down, variable costs go down. Variable costs are costs of labor or materials that change with sales. One way for a company to save money is to reduce its variable costs. One way to reduce variable costs is by finding a lower-cost supplier for your company's product. Other examples of variable costs are most labor costs, sales commissions, delivery charges, shipping charges, salaries,​ and wages. Performance bonuses to employees are also considered variable costs.
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interest rate Definition. A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies. For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000, then the interest rate would be 90/1000 *100% = 9%.
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- DEFINITION of 'Variable Rate Mortgage'. A type of home loan in which the interest rate is not fixed. The two most common types of mortgages in the United States are fixed rate and variable rate (also called adjustable rate). With a fixed rate mortgage, the interest rate does not change for the entire loan term. Borrowers know with certainty what the interest and principal payment on their mortgage will be each month for as long as they carry the mortgage. With a variable rate mortgage, the interest rate adjusts periodically.
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What is a Standard Variable Rate? A Standard Variable Rate is (rather obviously) a type of variable rate – this means your payments can go up or down according to changes in interest rates. Unlike a tracker, a Standard Variable Rate (or SVR) does not track above the Bank of England Base Rate at a set percentage. The rate you pay on an SVR mortgage will be determined by your mortgage lender. So, if the Bank of England Base Rate went up by 1%, your lender could choose: Not to increase the SVR.
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What is fixed cost and variable cost? Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases.Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.ariable Costs. Variable costs go up when a company produces more goods or services, and go down when it produces fewer goods or services. This is compared to fixed costs, which do not change in proportion to ...
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Medicare and Cataracts Surgery Medicare and Cataracts Surgery. Cataracts are the leading cause of blindness in the world, according to the World Health Organization. Even though they can occur at any age, cataracts are most common later in life--so common that they're considered part of the aging process.urgery to correct cataracts is usually performed in people over age 65, and this includes Medicare beneficiaries. That's why it's important to know how Medicare covers the treatment of cataracts. Surgery to remove cataracts is covered by Medicare, but Medicare only pays expenses directly related to the cataracts.
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Definition of Tenor Variable rates are typically lower. than fixed rates. • Receive an interest rate that is tied to an index (usually. the Prime Rate or LIBOR), and will fluctuate over time, based on market conditions. • Receive a margin (an amount added by the lender) that. is based on the credit of the student and cosigner; the.
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Mortgage Basics: Variable-Rate Mortgages By Lisa Smith. A variable-rate mortgage, also commonly referred to as an adjustable-rate mortgage or a floating-rate mortgage, is a loan in which the rate of interest is subject to change. When such a change occurs, the monthly payment is adjusted to reflect the new interest rate.
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Average Variable Cost (AVC): Definition, Function & Equation Summary. The average variable cost is a firm's variable cost per unit of output. Most AVC functions will start decreasing and then at one point, begin to increase. A firm will chose to shut down production in the short run if the market price is less than the average variable cost of production.efinition. The Average Variable Cost (AVC) is the total variable cost per unit of output. This is found by dividing Total Variable Cost (TVC) by total output (Q). Total Variable Cost (TVC) is all the costs that vary with output, such as materials and labor.
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What's the definition of unit rate? http://www.aaamath.com/rat-unit-rate.htm Unit rate is a rate in which the rate is expressed as a quantity of 1. Simply put is rate which has denominator of 1. For example, if a car goes 60 miles in 1 hour, then the unit rate is 60 miles per hour. Other examples are $5 per Kg, 5 mt per second and $80 per barrel.
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Average Variable Cost (AVC): Definition, Function & Equation Definition. The Average Variable Cost (AVC) is the total variable cost per unit of output. This is found by dividing Total Variable Cost (TVC) by total output (Q). Total Variable Cost (TVC) is all the costs that vary with output, such as materials and labor.efinition. The Average Variable Cost (AVC) is the total variable cost per unit of output. This is found by dividing Total Variable Cost (TVC) by total output (Q). Total Variable Cost (TVC) is all the costs that vary with output, such as materials and labor.
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Student Loan Interest Rates A fixed interest rate does not change over the life of the loan, although each year’s new loans may have a different fixed interest rate. A variable rate (sometimes called a floating rate) changes periodically, based on changes in prevailing interest rates.