variable expense definition
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variable cost (redirected from Variable Expense) Also found in: Dictionary, Wikipedia. A cost that is directly proportional to the volume of output produced. When production is zero, the variable cost is equal to zero. A cost to a person or business that varies over time according to a number of factors.
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- How to Identify Expenses as Mixed, Fixed or Variable. Business expenses can be fixed, which are expenses like rent that are always the same; variable, which are expenses that change from month to month; or a mixture of fixed and variable. Identify mixed, fixed or variable expenses in a business with help from a business professor in this free video on business expenses.
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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 :ariable costs are those costs which vary with output. where VC = variable cost, AVC = average variable cost, and Q = quantity of output produced.
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ICD-10 Coding for Hip Fractures S82.101H…… subsequent encounter for open fracture type I or II with delayed healing. S82.101J…… subsequent encounter for open fracture type IIIA, IIIB, or IIIC with delayed healing. S82.101K…… subsequent encounter for closed fracture with nonunion.
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Variable Cost: Definition, Formula & Examples Formula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs. Variable costs are those which do not remain constant, specifically when production activities fluctuate.
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Costs of production Fixed and variable costs. Fixed costs are those that do not vary with output and typically include rents, insurance, depreciation, set-up costs, and normal profit. They are also called overheads. Variable costs are costs that do vary with output, and they are also called direct costs. Examples of typical variable costs include fuel, raw materials, and some labour costs.
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Which of these is an example of a variable expense calculated in an organizational budget? In an organizational budget, variable expenses are the total cost that depended on the amount of goods produced. Example of variable expenses are: - Raw material expenses - Cost of plastic to make a handphone case - Cost of carrots if the company is selling carrot pies - etc
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- A cost that changes in proportion to a change in a company's activity or business. Investopedia explains Variable Cost. A good example of a variable cost is fuel for an airline. This cost changes with the number of flights and how long the trips are.
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Breakeven Analysis - Fixed Cost & Variable Cost, & Profit Variable costs are costs that vary directly with the number of products produced. For instance, the cost of the materials needed and the labor used to produce units isn't always the same. Examples of variable costs include: Wages for commission-based employees (such as salespeople) or contractors.
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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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- Spring Break. . . Make this year's spring break fun, safe and healthy. The current nationwide measles outbreak and the seriousness of other vaccine preventable diseases, such as pertussis (whooping cough), underscore just how important it is to stay up-to-date on all immunizations.
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What Are Variable Manufacturing Costs? Small businesses and new start-ups must keep close watch on their manufacturing costs to make a profit. The term variable manufacturing cost applies to accounting methods to track business expenses and profits. Depending on the type of accounting system used, the specifics of the variable costs vary widely. Manufacturing costs include funds spent on direct costs, such as the amount your business spends for the materials and the amount you pay labor to make the items.
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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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Fixed and Variable Expenses Total variable costs increase proportionately as volume increases, while variable costs per unit remain unchanged. For example, if the bicycle company incurred variable costs of $200 per unit, total variable costs would be $200 if only one bike was produced and $2,000 if 10 bikes were produced.
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- step variable costs. Definition. Variable costs which change dramatically at certain points because they involve large purchases that cannot be spread out over time.
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- Definition: Variable contribution margin is the margin that results when variable production costs are subtracted from revenue. It is most useful for making incremental pricing decisions where an entity must cover its variable costs, though not necessarily all of its fixed costs.
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A Guide to Fixed and Variable Costs of Doing Business Fixed costs are the costs associated with your business' product that must be paid regardless of the volume of that product or service you sell. 1  No matter how much you sell or don't sell, you still have to pay your fixed costs. 2  Variable costs are costs of labor or materials that change with sales.
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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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DEFINITION of 'Flexible Expense' DEFINITION of 'Flexible Expense'. An expense that is easily altered or avoided by the person bearing the cost. Flexible expenses are costs that may be manipulated in amount or eliminated by not engaging in the activity that incurred the expense.
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Fixed and Variable Expenses A small business owner can use a knowledge of fixed and variable expenses to determine the company's break-even point (the number of units or dollars at which total revenues equal total costs, so the company breaks even), and in making decisions related to pricing goods and services.
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economics. fundamental finance .com Variable Costs and Fixed Costs. All the costs faced by companies can be broken into two main categories: fixed costs and variable costs. Fixed costs are costs that are independent of output. These remain constant throughout the relevant range and are usually considered sunk for the relevant range (not relevant to output decisions). Fixed costs often include rent, buildings, machinery, etc. Variable costs are costs that vary with output.
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What is a variable cost? An expense can also be a variable cost. For instance, if a company pays a 5% sales commission on every sale, the company's sales commission expense will be a variable cost. When the company has no sales the total sales commission expense is $0. When sales are $100,000 the sales commission expense will be $5,000.
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Variable Costs Explanation of variable cost. An example is explained ahead to clarify the concept of variable cost. For instance, a business firm pays raw material for production. As and when the activity increases, the usage of raw material also increases thereby increasing the expenditure.
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variable cost Variable Cost. A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost.
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- Variable Costs: Variable costs change in direct proportion to the level of production. This means that total variable cost increase when more units are produced and decreases when less units are produced.Although variable in total, these costs are constant per unit.ixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc. Fixed cost per unit decreases with increase in production.
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SIC 4841 CABLE AND OTHER PAY TELEVISION SERVICES By 1995 there were approximately 11,800 cable systems with 62 million subscribers (65.3 percent of all television households) in the United States. The average cable system provided 30 or more channels, as well as other services such as custom programming and pay-perview options.he cable television industry was developed in the United States in the late 1940s to serve small communities unable to receive conventional television signals due to difficult terrain or physical distance from television stations.