March 2017

What is a variable cost? A variable cost is a business expense that changes in proportion to the amount of production or sale of a business. Variable costs rise or fall based on a company's production or sales volume - they…

What is the variable cost ratio? The variable cost ratio is a calculation of the costs of increasing production relative to the greater revenues that will result from the increase. An estimate of the variable cost ratio allows…

What is a semi-variable cost? A semi-variable cost, also called semi-fixed cost or mixed cost, is a cost made up of a mixture of fixed and variable components. The costs are fixed for a determined level of production or…

What is trade policy? Trade policy is an umbrella term that describes the regulations and policies that dictate how businesses and individuals in one country do business with businesses and individuals in another country.…

Labor is a semi-variable cost. Semi-variable costs have elements of variable costs and fixed costs. Variable costs vary with increases or decreases in production. The fixed costs remain the same whether production increases or…

What is the difference between the different types of costs? Fixed costs, total fixed costs, and variable costs all seem similar, but there are significant differences between the three. The main difference is that fixed costs…