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Variable Cost: Definition, Formula & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Costs that fluctuate proportionally with the fluctuation of output are called _____ costs.

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1. Jill started a business making designer soccer balls. If she made 500 soccer balls this month, sells then for $50 each, and the variable cost of producing one soccer ball is $12.75, then what are her total variable costs for this month?

2. The formula for total variable cost is _____.

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About This Quiz & Worksheet

The variable cost formula is helpful to know in business and economics. This quiz/worksheet will help you test your understanding of its application in addition to related terms and figures.

Quiz & Worksheet Goals

In these assessments you'll be tested on the characteristics and principles of:

  • Costs that fluctuate proportionally
  • Types of cost
  • Forms of variable costs
  • The variable cost formula
  • Recognition of variable vs. fixed costs

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Distinguishing differences - compare and contrast variable costs and fixed costs
  • Interpreting information - verify that you can read information regarding cost categorization and interpret it correctly
  • Information recall - access the knowledge you've gained regarding the formula for variable cost

Additional Learning

To learn more about variable costs, review the accompanying lesson titled Variable Cost: Definition, Formula & Examples. This lesson covers the following objectives:

  • Define variable cost
  • Know the formula for calculating variable cost
  • Differentiate between variable cost and fixed cost
  • Know what categorizing costs entails
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