What is the definition of a Variable Cost in Stock market?
- Posted on December 06, 2019
- Financial Terms
- By admin admin
A variable cost is the costs generated by a company that vary with output. An example may be fast food costs or assembling items during shipment. It clearly has nothing to do directly with the sales or the fast-food The total cost of producing a good or service can be split into two parts:
- A percentage of fixed costs
- Variable cost per item
If a company suddenly stops all production, its variable costs will fall to zero.
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