CVP ANALYSIS EXAM QUESTIONS GRADE A+

CVP ANALYSIS EXAM
QUESTIONS GRADE A+

CVP ANALYSIS - ANSWERSmanagement's study of the relationship among cost, volume, profit.



CVP ANALYSIS - ANSWERSthis study is used in planning, controlling, evaluating the objective of
the entity



BREAK EVEN POINT - ANSWERSindicates the point at which the entity neither makes a profit nor
suffers a loss



BREAK EVEN POINT - ANSWERSpoint where sales less variable cost and fixed cost result in zero
profit



CONTRIBUTION MARGIN - ANSWERSexcess of sales over variable cost



sales revenue - variable cost



sales revenue - variable cost - ANSWERScontribution margin formula



cm/sales revenue - ANSWERSCONTRIBUTION MARGIN RATIO



selling price per u - variable cost per u - ANSWERSCONTRIBUTION MARGIN PER UNIT



SALES MIX - ANSWERSrelative combination of products that compose a company's total sales