BUS 1350 MODULE 8 EXAM 3
QUESTIONS & CORRECT COMPLETE
SOLUTIONS ALL PASSED
Cost-Volume-Profit Analysis - Correct Answer ✔✔ a branch of financial analysis that
studies the relationship between expenses, sales volume and profitability
revenue - Correct Answer ✔✔ the total income generated from sales of a product or
service
variable expenses - Correct Answer ✔✔ expenses that change in proportion to the
volume of production
fixed expenses - Correct Answer ✔✔ expenses that must be paid regardless of sales
volume
break even point - Correct Answer ✔✔ the point where total revenue equals total
expenses
product mix - Correct Answer ✔✔ the combination of different products offered by the
company to the consumer
optimal product mix - Correct Answer ✔✔ the product mix that maximizes profits subject
to constraints on production and consumer choice
three types of expenses - Correct Answer ✔✔ variable
fixed
mixed
variable expense - Correct Answer ✔✔ changes in proportion to production volume
fixed expense - Correct Answer ✔✔ expenses that must be paid regardless of sales
volume (EXAMPLe. rent)
mixed expenses - Correct Answer ✔✔ expenses that are part variable and part fixed
such as commissions paid to sales staff
Cost-Volume-Profit Analysis (2 things about it) - Correct Answer ✔✔ studies the
relationship between expenses, sales volume and profitability
helps predict the effect of cutting overhead or raising prices on a company's net income
, break even point - Correct Answer ✔✔ the point at which the costs of producing a
product equal the revenue made from selling the product
when sales are above the break even point, a company ____, when sales are below the
break even point, a company ____ - Correct Answer ✔✔ profits, loses money
cvp chart - Correct Answer ✔✔ chart that shows the relationship between total
expenses and total revenue; the break even point occurs where the 2 lines cross
calculation for break even point - Correct Answer ✔✔ fixed costs/ (price per unit)-
(variable costs per unit) = breakeven point
Goal Seek - Correct Answer ✔✔ A what-if analysis tool that finds the input needed in
one cell to arrive at the desired result in another cell.
3 things that finding the break even point with what if analysis does: - Correct Answer
✔✔ 1- lets you explore the impact of changing different values in a worksheet
2- can use to explore the impact of changing financial conditions on a company's
profitability
3- one way of finding the break-even point is to use goal seek but a more efficient
approach is to use a data table
data table - Correct Answer ✔✔ excel table that displays the results from several what-if
analyses. the table consists of input cells and result cells.
data table consists of ___ cells and ___ cells - Correct Answer ✔✔ input cells and result
cells
input cell of a data table - Correct Answer ✔✔ contains the constants to be changed in
a what-if anlaysis
result cells of a data table - Correct Answer ✔✔ contain calculated values that are
impacted by the changing input values
in excel how many variables can the data tables have - Correct Answer ✔✔ you can
use one variable data tables or two variable data tables
3 things about one- variable data tables - Correct Answer ✔✔ 1- specify one input cell
and any number of result cells
2- the range of possible values of rthe input cell is entered in the first row or column of
the data table and the result values appear in the subsequent rows or columns
3- useful in business to explore how changing a single input cell can impact several
financial results
how is a one variable data table useful to financial analysis? - Correct Answer ✔✔ helps
a business see how changing a single factor can impact several financial results
QUESTIONS & CORRECT COMPLETE
SOLUTIONS ALL PASSED
Cost-Volume-Profit Analysis - Correct Answer ✔✔ a branch of financial analysis that
studies the relationship between expenses, sales volume and profitability
revenue - Correct Answer ✔✔ the total income generated from sales of a product or
service
variable expenses - Correct Answer ✔✔ expenses that change in proportion to the
volume of production
fixed expenses - Correct Answer ✔✔ expenses that must be paid regardless of sales
volume
break even point - Correct Answer ✔✔ the point where total revenue equals total
expenses
product mix - Correct Answer ✔✔ the combination of different products offered by the
company to the consumer
optimal product mix - Correct Answer ✔✔ the product mix that maximizes profits subject
to constraints on production and consumer choice
three types of expenses - Correct Answer ✔✔ variable
fixed
mixed
variable expense - Correct Answer ✔✔ changes in proportion to production volume
fixed expense - Correct Answer ✔✔ expenses that must be paid regardless of sales
volume (EXAMPLe. rent)
mixed expenses - Correct Answer ✔✔ expenses that are part variable and part fixed
such as commissions paid to sales staff
Cost-Volume-Profit Analysis (2 things about it) - Correct Answer ✔✔ studies the
relationship between expenses, sales volume and profitability
helps predict the effect of cutting overhead or raising prices on a company's net income
, break even point - Correct Answer ✔✔ the point at which the costs of producing a
product equal the revenue made from selling the product
when sales are above the break even point, a company ____, when sales are below the
break even point, a company ____ - Correct Answer ✔✔ profits, loses money
cvp chart - Correct Answer ✔✔ chart that shows the relationship between total
expenses and total revenue; the break even point occurs where the 2 lines cross
calculation for break even point - Correct Answer ✔✔ fixed costs/ (price per unit)-
(variable costs per unit) = breakeven point
Goal Seek - Correct Answer ✔✔ A what-if analysis tool that finds the input needed in
one cell to arrive at the desired result in another cell.
3 things that finding the break even point with what if analysis does: - Correct Answer
✔✔ 1- lets you explore the impact of changing different values in a worksheet
2- can use to explore the impact of changing financial conditions on a company's
profitability
3- one way of finding the break-even point is to use goal seek but a more efficient
approach is to use a data table
data table - Correct Answer ✔✔ excel table that displays the results from several what-if
analyses. the table consists of input cells and result cells.
data table consists of ___ cells and ___ cells - Correct Answer ✔✔ input cells and result
cells
input cell of a data table - Correct Answer ✔✔ contains the constants to be changed in
a what-if anlaysis
result cells of a data table - Correct Answer ✔✔ contain calculated values that are
impacted by the changing input values
in excel how many variables can the data tables have - Correct Answer ✔✔ you can
use one variable data tables or two variable data tables
3 things about one- variable data tables - Correct Answer ✔✔ 1- specify one input cell
and any number of result cells
2- the range of possible values of rthe input cell is entered in the first row or column of
the data table and the result values appear in the subsequent rows or columns
3- useful in business to explore how changing a single input cell can impact several
financial results
how is a one variable data table useful to financial analysis? - Correct Answer ✔✔ helps
a business see how changing a single factor can impact several financial results
