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Variable Cost


Source: Supply Chain & Logistics Glossary Author: VV.AA. Institute: Georgia Tech - The Supply Chain and Logistics Institute	Courtesy of

Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases. For business analysis, all costs are either defined as variable or fixed. For a business to break even, all fixed costs must be covered. To make a profit, all variable and fixed costs must be recovered plus some extra amount.

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