Define: Variable Cost

UK Accounting Glossary

Definition: Variable Cost


Quick Summary of Variable Cost


An item of expenditure that, in total, varies directly with the level of activity achieved.


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What is the dictionary definition of Variable Cost?

Dictionary Definition


An item of expenditure that, in total, varies directly with the level of activity achieved.

For example: The cost of direct materials will tend to double if output doubles, a characteristic being that it is incurred at a constant per unit produced.

In practice, there are very few examples of true variable costs or true fixed costs; with most costs being semi-variable costs.


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Full Definition of Variable Cost



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Variable Cost FAQ's



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https://payrollheaven.com/define/variable-cost/
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Variable Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 12, 2019 https://payrollheaven.com/define/variable-cost/.
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Variable Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/variable-cost/ (accessed: November 12, 2019).
American Psychological Association (APA):
Variable Cost. PayrollHeaven.com. Retrieved November 12, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/variable-cost/

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This glossary post was last updated: 5th May 2019.