Variable Cost Per Unit

variable cost  VARIABLE COSTS definition: Variable costs are costs that vary depending on how much of a product is made  The most common variable costs include raw materials, direct labor, and shipping costs These costs are directly tied to the production volume and can change

The average variable cost is calculated by dividing a company's total variable cost by the quantity of output  Variable costs are incurred when production output or sales volume increases Fixed costs are also known as overhead costs, period costs, or

The average variable cost, or “variable cost per unit,” equals the total variable costs incurred by a company divided by the total output ( the number of A variable cost is a cost that changes with the level of output or production In other words, it is a cost that increases as production increases and decreases