Variable Cost
/ˈvɛəriəbl kɒst/
Definitions
- (n.) A cost that varies in direct proportion to the level of production or business activity.
In contract disputes, the allocation of variable costs can be pivotal to determining damages.
Forms
- variable cost
- variable costs
Related terms
See also
Commentary
In legal contexts, distinguishing variable costs from fixed costs is crucial in contract drafting and damage calculations, ensuring clarity in financial obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.