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When total sales revenue is equal to total fixed costs, a company has reached its - point. |
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The amount that the sale of one unit contributes toward recovering fixed costs and profit is called the margin per unit |
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When the contribution margin per unit is expressed as a percentage of the product's selling price it is called the contribution margin . |
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Predicting the volume of activity, the costs to be incurred, revenues to be received, and profits to be earned is called CVP or - - analysis. |
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A cost that changes with volume but not at a constant rate like pure variable costs is called a cost |
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A cost remains unchanged in total amount even when production volume varies from period to period. |
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A method of drawing an estimated line of cost behaviour which connects the highest and lowest costs on a scatter diagram with a straight line is called the - method. |
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A method for deriving an estimated line of cost behaviour that is more precise than the high-low method is the - regression statistical method. |
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If company sales are $450,000 and break-even sales are $375,000, the $75,000 excess can be called the of . |
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Sales personnel receive an hourly wage plus a commission on sales in excess of $10,000. The sales salary expense account which includes the hourly pay and the commissions is an example of a cost. |
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The range of sales volume that a business recognizes as its normal operating range is called the of operations. |
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A company sells 6 tons of concrete mix, 3 tons of decorative rock, and 1 ton of structural rock for every 10 tons of product it sells. The sales ratio (6:3:1) of volumes of the various products is called the company's . |
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The cost of direct materials is $4 per unit. As production increases, the total cost of direct material will increase proportionately, since direct material is an example of a cost. |
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A cost is represented by a straight line, which means it increases at a constant rate as the activity base increases. |
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A - cost remains fixed over limited ranges of volumes but increases by a lump sum when volume increases beyond maximum amounts. |
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