Variable Cost Ratio

Variable Cost Ratio,

Variable Cost Ratio: What is the Meaning of Variable Cost Ratio?

The variable cost index is a calculation of the cost of increasing production in relation to an increase in income as a result of an increase. Estimating the variable cost ratio allows the company to find the ideal balance between increasing revenue and increasing production costs.

• The variable cost ratio represents the additional costs generated by the surplus production.
• A high index indicates that the company may benefit from relatively low sales because it has lower fixed costs.
• A lower rate indicates that the company has higher fixed costs and needs to balance itself before making a profit.

Literal Meanings of Variable Cost Ratio

Variable:

Meanings of Variable:

1. Is contradictory or has a fixed pattern that can change.

2. It can be changed or customized.

3. Elements, features or factors that may vary or change.

Sentences of Variable

1. The quality of hospital food varies greatly.

2. Drill variable speed

3. There are many variables involved in making meaningful predictions.

Synonyms of Variable

unsettled, inconstant, capricious, unfixed, mutable, undependable, unstable, fluctuating, unsteady, variational, chameleonic, fluid, movable, protean, wavering, floating, up and down, shifting, unreliable, changeable, unpredictable, irregular, uneven

Cost:

Meanings of Cost:

1. Payment (amount of money) is required before receiving or performing (an item or action).

2. Appreciate the price.

3. The amount that is paid or spent to buy or receive something.

Sentences of Cost

1. Each issue of the magazine costs 1.

2. Your job is to plan and calculate the cost of the media program for the campaign.

3. We can cover the cost of the event.

Synonyms of Cost

sell for, estimate the cost of, price, quotation, value, asking price, estimate the price of, set someone back, tariff, market price, rate, put a price on, damage, selling price, face value, charge, knock someone back, rental, fee, fetch, go for, evaluate, put a figure on, put a value on, worth, toll, hire charge, fare

Ratio:

Meanings of Ratio:

1. A quantitative relationship between two quantities that indicates how many times one value contains or is included in another.

Sentences of Ratio

1. The male-female employment ratio is 8 to 1

Synonyms of Ratio

relationship, balance, correspondence, quantitative relation, proportion, correlation, comparative number/extent, fraction, quotient, percentage

source https://howtodiscuss.com/t/variable-cost-ratio/75584/1