Questions:
Match the appropriate letter for the key term or concept to each definition provided (items 1-12). Note that not all key terms and concepts will be used.
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a.
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Cost-volume-profit analysis
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i.
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Break-even point
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b.
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Cost formula
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j.
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High-low technique
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c.
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Contribution margin
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k.
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Managerial accounting
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d.
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Contribution margin format
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l.
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Management process
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income statement
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m.
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Variable cost
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e.
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Linearity assumption
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n.
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Fixed cost
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f.
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Contribution margin ratio
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o.
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Relevant range
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g.
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Operating leverage
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p.
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Mixed (semivariable) cost
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h.
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Sales mix
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q.
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Cost behavior pattern
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1. The proportion of total sales represented by various products or categories of products.
2. The difference between revenues and variable costs.
3. The concept that operating income changes proportionately more than revenues for any given change in revenues.
4. The amount of revenue required to have neither operating income nor operating loss.
5. The percentage of each dollar in revenues that is available to cover fixed expenses; revenues minus variable costs, divided by revenues.
6. An income statement presentation in which variable costs are subtracted from revenues to show contribution margin, from which fixed costs are subtracted to determine operating income.
7. Analysis of the impact on profit of volume and cost changes using knowledge about the behavior patterns of the costs involved.
8. An arithmetic expression that reflects the fixed and variable elements of a cost.
9. The range of activity over which the fixed or variable cost behavior pattern exists.
10. A cost that has both fixed and variable elements.
11. A cost that does not change in total as the level of activity changes within a relevant range.
12. Planning, organizing, and controlling the activities of an organization so I can accomplish its purpose.