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Dictionary by pitch.dog
Margins, break-even & unit economics · Core

Variable cost

Also called: volume-dependent cost

ELI5

A cost that changes with activity volume under the chosen range and classification.

Used in conversation

“Keep variable cost on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Variable cost” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.