ACC 202 FINAL PAPER MODULE REVIEW
TESTED QUESTIONS 2026 100% CORRECT.
◍ Contribution Margin. Answer: Sales - Variable Expenses
◍ Break-Even-Point. Answer: The level of sales at which profit is
zero
◍ Profit. Answer: =(Sales-Variable Expenses) -Fixed Expenses OR
CM ratio X Sales- Fixed Expenses
◍ Cost Volume Profit Graph. Answer: The relationships among
revenue, cost, profit, and volume.
◍ Contribution Margin Ratio. Answer: Contribution Margin/Sales
◍ Change in Contribution Margin. Answer: CM Ratio/ Change in
Sales
◍ Variable Expense Ratio. Answer: Variable Expenses/ Sales
◍ Incremental Analysis. Answer: Focuses only on those costs and
revenues that change as a result of a decision
, ◍ Units to break even. Answer: Fixed expenses/ Unit CM
◍ Margin of Safety. Answer: The excess or budgeted or actual sales
dollars over the break even volume of sales dollars.
Total budgeted sales- Break even sales
◍ Margin of safety Percentage. Answer: Margin of safety/ Total
budgeted sales
◍ Operating Leverage. Answer: A measure of how sensitive net
operating income is to a given percentage change in dollar sales
◍ Degree of Operating Leverage. Answer: A measure, at a given level
of sales, of how a percentage change in sales will affect profits
=Contribution Margin/ Net Operating Income
◍ Sales Mix. Answer: The relative proportions in which a company's
products are sold.
◍ Variable Costing. Answer: Costing method that includes only
variable manufacturing costs- Direct Materials, Direct Labor, and
variable manufacturing overhead- in unit product costs
TESTED QUESTIONS 2026 100% CORRECT.
◍ Contribution Margin. Answer: Sales - Variable Expenses
◍ Break-Even-Point. Answer: The level of sales at which profit is
zero
◍ Profit. Answer: =(Sales-Variable Expenses) -Fixed Expenses OR
CM ratio X Sales- Fixed Expenses
◍ Cost Volume Profit Graph. Answer: The relationships among
revenue, cost, profit, and volume.
◍ Contribution Margin Ratio. Answer: Contribution Margin/Sales
◍ Change in Contribution Margin. Answer: CM Ratio/ Change in
Sales
◍ Variable Expense Ratio. Answer: Variable Expenses/ Sales
◍ Incremental Analysis. Answer: Focuses only on those costs and
revenues that change as a result of a decision
, ◍ Units to break even. Answer: Fixed expenses/ Unit CM
◍ Margin of Safety. Answer: The excess or budgeted or actual sales
dollars over the break even volume of sales dollars.
Total budgeted sales- Break even sales
◍ Margin of safety Percentage. Answer: Margin of safety/ Total
budgeted sales
◍ Operating Leverage. Answer: A measure of how sensitive net
operating income is to a given percentage change in dollar sales
◍ Degree of Operating Leverage. Answer: A measure, at a given level
of sales, of how a percentage change in sales will affect profits
=Contribution Margin/ Net Operating Income
◍ Sales Mix. Answer: The relative proportions in which a company's
products are sold.
◍ Variable Costing. Answer: Costing method that includes only
variable manufacturing costs- Direct Materials, Direct Labor, and
variable manufacturing overhead- in unit product costs
