ACCT 2000 LSU Exam 3 - Letitia Lowe-
Ardoin Questions and Correct Detailed
Answers (Verified Answers)
What are the three classification of cost - ✔✔variable cost, fixed cost, mixed cost
what is a variable cost - ✔✔per unit it remains the same with the changed in activity.
If activity increases then variable cost increase and vice versa
What is a fixed cost - ✔✔A cost that in total remains the same no matter the activity.
(stays the same) unit cost can vary inversely with the changes in activity
What is a mixed cost - ✔✔A cost that includes both a fixed portion and a variable portion
What is the high low method - ✔✔A method that takes the highest and lowest cost and
units to separate the variable and fixed cost
What are the main components of a CVP - ✔✔sales - variable cost = contribution margin
contribution margin - fixed cost = net income
Break-Even point - ✔✔contribution margin = fixed cost
total sales= total cost (fixed and variable)
net income is 0
expressed in both cost and units
What is the value chain - ✔✔Refers to all business processes associated with providing
a product or service
Ardoin Questions and Correct Detailed
Answers (Verified Answers)
What are the three classification of cost - ✔✔variable cost, fixed cost, mixed cost
what is a variable cost - ✔✔per unit it remains the same with the changed in activity.
If activity increases then variable cost increase and vice versa
What is a fixed cost - ✔✔A cost that in total remains the same no matter the activity.
(stays the same) unit cost can vary inversely with the changes in activity
What is a mixed cost - ✔✔A cost that includes both a fixed portion and a variable portion
What is the high low method - ✔✔A method that takes the highest and lowest cost and
units to separate the variable and fixed cost
What are the main components of a CVP - ✔✔sales - variable cost = contribution margin
contribution margin - fixed cost = net income
Break-Even point - ✔✔contribution margin = fixed cost
total sales= total cost (fixed and variable)
net income is 0
expressed in both cost and units
What is the value chain - ✔✔Refers to all business processes associated with providing
a product or service
