WGU C213 ACCOUNTING TOPIC 11
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS
Visual-fit - Correct Answer -A method of segregating the fixed and variable
components of a mixed cost by plotting on total costs at several activity levels
and drawing a regression line through the points
Break-even Point - Correct Answer -The amount of sales at which total costs of
the number of units sold equal total revenues; the point at which there is no
profit or loss
Contribution Margin - Correct Answer -The difference between total sales and
variable costs; the portion of sales revenue available to cover fixed costs and
provide a profit
Contribution Margin Ratio - Correct Answer -The percentage of net sales
revenue left after variable costs are deducted; the contribution margin divided
by net sales revenue.
Cost Behavior - Correct Answer -The way a cost is affected by changes in
activity levels
Cost-volume-profit (C-V-P) Analysis - Correct Answer -Techniques for
determining how changes in revenues, costs, and level of activity affect the
profitability of an organization.
Fixed Costs - Correct Answer -Costs that remain constant in total, regardless of
activity level, at least over a certain range of activity
1
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS
Visual-fit - Correct Answer -A method of segregating the fixed and variable
components of a mixed cost by plotting on total costs at several activity levels
and drawing a regression line through the points
Break-even Point - Correct Answer -The amount of sales at which total costs of
the number of units sold equal total revenues; the point at which there is no
profit or loss
Contribution Margin - Correct Answer -The difference between total sales and
variable costs; the portion of sales revenue available to cover fixed costs and
provide a profit
Contribution Margin Ratio - Correct Answer -The percentage of net sales
revenue left after variable costs are deducted; the contribution margin divided
by net sales revenue.
Cost Behavior - Correct Answer -The way a cost is affected by changes in
activity levels
Cost-volume-profit (C-V-P) Analysis - Correct Answer -Techniques for
determining how changes in revenues, costs, and level of activity affect the
profitability of an organization.
Fixed Costs - Correct Answer -Costs that remain constant in total, regardless of
activity level, at least over a certain range of activity
1
