Definition of variable cost in English:

variable cost


  • A cost that varies with the level of output.

    • ‘The thing that worries us is that VisitScotland has substantial fixed costs and the only area where there are variable costs is in the marketing.’
    • ‘This drop in variable costs has helped to lift profit margins.’
    • ‘Auto suppliers gained longer-term contracts, but paid a stiff price in terms of taking on more fixed costs and a constant struggle to match variable costs to price cuts.’
    • ‘They have to identify their variable costs, then calculate the money they can save or the new sales they can log adding technology.’
    • ‘With the yen at these levels, Japanese exporters could not even cover their variable costs, let alone return a profit on sales in international markets.’
    • ‘Examples of common fixed costs are insurance and depreciation while variable costs include direct labor, raw materials and utilities.’