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.


Full Definition of Variable Cost Ratio


Variable Cost Ratio FAQ's

What is the Formula for Variable Cost Ratio?

Variable Cost Ratio = Variable Costs​ / Net Sales

Cite Term

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Page URL
Modern Language Association (MLA):
Variable Cost Ratio. Payroll & Accounting Heaven Ltd. November 12, 2019
Chicago Manual of Style (CMS):
Variable Cost Ratio. Payroll & Accounting Heaven Ltd. (accessed: November 12, 2019).
American Psychological Association (APA):
Variable Cost Ratio. Retrieved November 12, 2019, from website:

Definition Sources

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