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Variable Costs Definition and Explanation PDF Download

Learn Variable Costs definition in marketing with explanation to study “What are Variable Costs”. Study variable costs explanation with marketing terms to review marketing course for online MBA programs.

Variable Costs Definitions:

  1. Costs that vary directly with the level of production.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong

  2. Costs that vary directly with the level of production.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong

Variable Costs Explanation:

A variable expense is a corporate cost that adjustments in extent to generation yield. Variable costs increment or lessening relying upon an organization's generation volume; they ascend as creation increments and fall as generation diminishes. Instances of variable expenses incorporate the expenses of crude materials and bundling. The absolute costs brought about by any business comprise of fixed expenses and variable expenses. Fixed expenses will be costs that continue as before paying little respect to creation yield. Regardless of whether a firm makes deals or not, it must compensation its fixed expenses, as these expenses are free of yield. Instances of fixed expenses are lease, worker compensations, protection, and office supplies. An organization should even now pay its lease for the space it involves to maintain its business activities regardless of the volume of item made and sold. Albeit fixed expenses can change over some stretch of time, the change won't be identified with generation.

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