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variable cost rate

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The amount by which total costs will change when an activity is increased by one unit. In the
equation of the line, y = a + bx, the variable cost rate is represented by ‘b’ and the units of
activity are indicated by ‘x’.

Dictionary

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

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