Average variable cost (AVC) is an
* TVC = Total Variable Cost
* AVC = Average Variable Cost
Average variable cost plus
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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 fixed cost — (AFC) is an economics term to describe the total fixed costs (TFC) divided by the number of units produced. left ( frac{TFC}{Q} ight ) = AFC; TFC = total fixed cost, Q = quantity of units producedAverage variable cost plus average fixed cost… … Wikipedia
Cost-plus pricing — is a pricing method used by companies to maximize their profits. The firms accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost, and then charging a price which is determined … Wikipedia
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
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
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
Cost of goods sold — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
cost — The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to… … Financial and business terms
Cost-plus pricing with elasticity considerations — One of the most common pricing methods used by firms is cost plus pricing. In spite of its ubiquity, economists rightly point out that it has serious methodological flaws. It takes no account of demand. There is no way of determining if potential … Wikipedia
Total cost — In economics, and cost accounting, total cost (or total costs) describes the total economic cost of production and is made up of variable costs, which vary according to quantity produced such as raw materials, plus fixed costs, which are… … Wikipedia
