Enter the variable cost and total output/quantity into this average variable cost calculator to evaluate the ratio of cost to output.
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Average Variable Cost Formula
The formula for calculating the average variable cost of an item or business is as follows:
AVC = VC / Q
- Where AVC is the average variable cost
- VC is the variable cost
- Q is the total output
Average Variable Cost Definition
The average variable cost is defined as the ratio of the variable cost to the total output of a business or good.
How to calculate average variable cost?
How to calculate average variable cost?
- First, determine the variable cost.
This is the total variable cost of the process or product being analyzed.
- Next, determine the total output.
This is the total output quantity produced. For example, the production of 100 units of a product.
- Finally, calculate the average variable cost.
Calculate the average variable cost using the formula above.
FAQ
What is average variable cost?
The average variable cost is defined as the ratio of the variable cost to the total output of a business or good.
