Define: Variable Cost Ratio

UK Accounting Glossary

Definition: Variable Cost Ratio


Quick Summary of Variable Cost Ratio


The variable cost ratio reveals the total amount of variable expenses incurred by a business, stated as a proportion of its net sales.



What is the dictionary definition of Variable Cost Ratio?

Dictionary Definition


This is the ratio of variable cost to sales revenue, and is expressed as a percentage.


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Full Definition of Variable Cost Ratio



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Variable Cost Ratio FAQ's


What is the Formula for Variable Cost Ratio?

Variable Cost Ratio = Variable Costs​ / Net Sales


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Variable Cost Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 17, 2019 https://payrollheaven.com/define/variable-cost-ratio/.
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Variable Cost Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/variable-cost-ratio/ (accessed: September 17, 2019).
American Psychological Association (APA):
Variable Cost Ratio. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/variable-cost-ratio/

Definition Sources


Definitions for Variable Cost Ratio are sourced/syndicated from:


This glossary post was last updated: 29th January 2019.