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variable cost

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variable cost

Cost of production materials, fuel, and so on which varies directly with the volume of output. For example, steel is a direct cost for a car manufacturer because if twice the number of cars are produced, twice the amount of steel will be used in the production process.



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lt;p>Bid buckets and end-user discounts are practices allegedly used by Intel to subsidize sales of its chips, charging less for them than the variable cost of producing them.
Sources of Information (1) The Unit Price less Unit Variable Cost is called Contribution because it represents the amount that can be contributed toward fixed costs by each unit sold after the variable costs are deducted from the sales price.
Sales and Variable Costs When projected sales decreases during a recessionary period, production levels need to drop proportionally.
 
 
 
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