todd shenkenberg md pa Hematology & Oncology An internist doctor of osteopathy that specializes in the treatment of the combination of hematology and oncology disorders.
Formula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.Variable costs are those which do not remain constant, specifically when production activities fluctuate.ormula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.
1 Average Variable Cost: This is per unit total variable cost, or total variable cost divided by the quantity of output produced. 2  Average variable cost is influenced by short-run marginal returns, decreasing for small quantities, then increasing for larger quantities.verage cost is a general notion of the per unit cost incurred in the production of a good or service. It is specified as the total cost divided by the quantity of output. Average cost plays a key role in the short-run production decision by a firm when evaluated against the price, which is per unit revenue.