variable cost

Definition of "variable cost"
  1. An expense that changes in direct proportion to the level of business activity within a short time span, such as transportation and equipment lease costs
How to use "variable cost" in a sentence
  1. The variable cost of driving a taxi includes fuel and maintenance.
  2. In their budget, the event organizers had to account for the variable cost of renting equipment based on expected attendance.
  3. High variable costs, such as the cost of raw materials, can affect the profit margins of a manufacturing business.

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