Average variable cost is:

A) variable cost per unit multiplied by output.
B) total variable cost divided by output.
C) the difference between average total cost and total variable cost.
D) the difference between total cost and total variable cost.

Average Variable Cost

The per-unit variable cost, determined by dividing the overall variable expenses by the amount of output generated.

Total Variable Cost

The sum of all costs that vary with output level, including costs of direct materials, direct labor, and other expenses that increase or decrease as production volume changes.

Variable Cost

Costs that change in proportion to the level of output in the production process.