Formula and Calculation of Variable Costs ... is important for the following reasons: Variable cost and average variable cost may not always be equal due to price increases or discounts.

or the average variable cost, TVC/q, are two other terms that can be used. The cost of producing the next item is called the Marginal Cost (MC) at q items. MC(q) = TC(q 1) – TC(q) is the correct ...

The traditional formula for the cost of equity ... that the company pays a dividend. The cost of capital, generally calculated using the weighted average cost of capital, includes both the cost ...