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variable manufacturing overhead cost

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The indirect manufacturing costs that will change in proportion to the change in an activity such
as machine hours. For example, a portion of a manufacturer’s electricity cost will vary with the
change in the number of machine hours worked.

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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.

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