A cost that varies with the level of output.
More example sentences
- This drop in variable costs has helped to lift profit margins.
- 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.
- 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.
Definition of variable cost in:
- The British & World English dictionary