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average variable costs

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  • average variable cost — An average taken over a specified period of the variable cost of producing units of production (see average cost). The variable costs (such as the cost of raw materials, direct labour, machine time, etc. ) of producing a unit are those that vary… …   Big dictionary of business and management

  • Average cost — In economics, average cost is equal to total cost divided by the number of goods produced (the output quantity, Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed… …   Wikipedia

  • average cost — 1) The average cost per unit of output calculated by dividing the total costs, both fixed costs and variable costs, by the total units of output. 2) (AVCO; weighted average cost) A method of valuing units of raw material or finished goods issued… …   Accounting dictionary

  • average cost — The average cost per unit of output calculated by dividing the total costs, both fixed costs and variable costs, by the total units of output. (AVCO; weighted average cost) A method of valuing units of raw material or finished goods issued from… …   Big dictionary of business and management

  • Variable universal life insurance — (often shortened to VUL) is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to …   Wikipedia

  • Variable-rate mortgage — A variable rate mortgage or floating rate mortgage is a mortgage loan where the interest rate varies to reflect market conditions. The interest rate will normally vary with changes to the base rate of the central bank and reflects changing costs… …   Wikipedia

  • Variable pricing — Most firms use a fixed price policy. That is, they examine the situation, determine an appropriate price, and leave the price fixed at that amount until the situation changes, at which point they go through the process again. The alternative has… …   Wikipedia

  • Sunk costs — In economics and business decision making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred… …   Wikipedia

  • Long-Run Average Total Cost - LRATC — A business metric that represents the average cost per unit of output over the long run, where all inputs are considered to be variable. Long term unit costs are almost always less than short term unit costs because in a long term time frame,… …   Investment dictionary

  • Cost curve — In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to find the optimal point of production (minimising cost), and… …   Wikipedia

  • Perfect competition — Economics …   Wikipedia

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