Variable cost

Cost and management accounting.

A variable cost is a cost which increases as the level of production (or other activity) increases, because it is incurred as a consequence of the production or other activity.

Contrasted with a fixed cost.

See also

• Contribution
• Cost behaviour
• Direct costs
• Expense
• Fixed cost
• Flexible budgeting
• Indirect costs
• Management accounting
• Semi-fixed cost
• Semi-variable cost
• Total cost