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Variable Cost per Guest (VC/Guest) v2

`"Variable Cost per Guest (VC/Guest)" = ( "High Cost" - "Low Cost" )/( "High # of Guests" - "Low # of Guests" )`
hc
lc
hng
lng
Tags
Hospitality

This equation calculatesthe variable cost on a per guest basis. Variable Cost is the opportunity cost incurred in the short-run production that depends on the quantity of output.

Resource:

  • Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
  • "Total Variable Cost." AmosWEB Is Economics: Encyclonomic WEB*pedia. N.p., n.d. Web. 07 Aug. 2015.