Variable costs
The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines variable costs as: ‘Costs that change with the output of the organisation.’
The glossary of statistical terms, published by the Organisation for Economic Co-operation and Development (OECD), defines variable costs as: ‘… costs that vary with the amount produced. Examples are materials, fuel, production labour and maintenance. As the relevant time period is extended, more costs become variable.’
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