Define: Average Variable Cost

UK Accounting Glossary

Definition: Average Variable Cost


Quick Summary of Average Variable Cost


The average variable cost (AVC) is the total variable cost per unit of output. This is found by dividing total variable cost (TVC) by total output (Q).



What is the dictionary definition of Average Variable Cost?

Dictionary Definition


In economics, average variable cost (AVC) is a firm’s variable costs (labour, electricity, etc.) divided by the quantity of output produced.


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Full Definition of Average Variable Cost


Cost determined by dividing total variable cost by the number of units of output.


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Average Variable Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/average-variable-cost/ (accessed: February 25, 2020).
American Psychological Association (APA):
Average Variable Cost. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/average-variable-cost/

Definition Sources


Definitions for Average Variable Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th August 2019.