The variable cost ratio
A)expresses variable costs as a percentage of total costs.
B)expresses the proportion between fixed costs and variable costs.
C)expresses variable cost in terms of sales dollars.
D)expresses the proportion of sales dollars available to cover fixed costs and provide for a profit.

Question

Quizplus · Accepted Answer

The variable cost ratio expresses variable cost in terms of sales dollars, showing how much of each sales dollar is consumed by variable costs.

The Variable Cost Ratio