| Avoidable expense | Expense (or cost) that is relevant for decision making; expense that is not incurred if a department, product, or service is eliminated.
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| Break-even point | Output level at which sales equals fixed plus variable costs; where income equals zero.
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| Contribution margin per unit | Amount that the sale of one unit contributes toward recovering fixed costs and earning profit; defined as sales price per unit minus variable expense per unit.
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| Contribution margin ratio | Product's contribution margin divided by its sale price.
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| Cost-volume-profit (CVP) analysis | Planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received.
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| Incremental cost | Additional cost incurred only if a company pursues a specific course of action.
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| Margin of safety | Excess of expected sales over the level of break-even sales.
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| Mixed cost | Cost that behaves like a combination of fixed and variable costs.
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| Relevant benefits | Additional or incremental revenue generated by selecting a particular course of action over another.
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| Sales mix | Ratio of sales volumes for the various products sold by a company.
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| Unavoidable expense | Expense (or cost) that is not relevant for business decisions; an expense that would continue even if a department, product, or service is eliminated.
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