Which produces total income equal to zero


Match each of the following terms a through j with the appropriate definitions 1 through 10.
(a) Absorption costing
(b) Variable costing
(c) Contribution margin
(d) Contribution format
(e) Manufacturing margin
(f) Contribution margin ratio
(g) Break even point
(h) Product costs
(i) Period costs
(j) Gross margin

(1) Sales less cost of goods sold.
(2) A specific number of units sold which produces total income equal to zero.
(3) Sales less variable production costs.
(4) A costing method that includes all manufacturing costs.
(5) Costs which are expensed in the period they are incurred.
(6) Sales less variable expenses.
(7) A costing method that includes only variable manufacturing costs.
(8) Direct labor, direct materials and manufacturing overhead.
(9) An income statement format which focuses on cost behavior.
(10) Contribution margin divided by sales.

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Accounting Basics: Which produces total income equal to zero
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