Term:
Variable costs
Definition:
Variable costs are costs that vary with the amount produced. Examples are materials, fuel, production labour and maintenance. As the relevant time period is extended, more costs become variable.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.
