Acct 212 Test 2 Liberty University Professor
Koss with answers
Break |even |analysis |- |verified |answersdetermine |the |point |at |which |revenue |received |equals |the |costs
(fixed |cost) |/ |(selling |unit |price |- |variable |unit |cost)
Contribution |margin |per |unit |- |verified |answersSelling |price |per |unit |- |total |variable |cost |per |unit
Contribution |margin |ratio |- |verified |answersContribution |margin |per |unit |/ |selling |price |per |unit
Break-even |point |in |units |- |verified |answersFixed |costs |/ |Contribution |margin |per |unit
CVP |(cost-volume-profit |chart) |- |verified |answershelps |managers |predict |how |changes |in |costs |and |
sales |levels |affect |profit. |also |called |break-even |analysis
Break-even |point |in |dollars |- |verified |answersFixed |costs |/ |contribution |margin |ratio
Dollar |sales |at |target |income: |- |verified |answers(fixed |costs |+ |target |income) |/ |(Contribution |margin |
ratio)
Unit |sales |at |target |income: |- |verified |answers(fixed |costs |+ |target |income) |/ |(contribution |margin |per
|unit)
Margin |of |safety |- |verified |answershow |much |output |or |sales |level |can |fall |before |a |business |reaches |
its |break-even |point/incurs |a |loss
(Expected |sales |- |break |even |sales) |/ |(expected |sales)
Variable |income |statement |- |verified |answers
Fixed |costs |- |verified |answers-remain |unchanged |despite |variations |in |the |volume |of |activity
-does |not |apply |to |the |per |unit |amount |(rather |the |fixed |cost |per |unit |of |output |decreases |as |volume
|increases)
Variable |costs |- |verified |answers-change |in |proportion |to |changes |in |volume |of |activity
-notice |that |variable |cost |per |unit |remains |constant |but |the |total |amount |of |variable |cost |changes |
with |the |level |of |production
Mixed |costs |- |verified |answersincludes |both |fixed |and |variable |cost |components
Step-wise |costs |- |verified |answerswhen |volume |significantly |changes |the |cost |shifts |to |another |level |
for |that |range
Koss with answers
Break |even |analysis |- |verified |answersdetermine |the |point |at |which |revenue |received |equals |the |costs
(fixed |cost) |/ |(selling |unit |price |- |variable |unit |cost)
Contribution |margin |per |unit |- |verified |answersSelling |price |per |unit |- |total |variable |cost |per |unit
Contribution |margin |ratio |- |verified |answersContribution |margin |per |unit |/ |selling |price |per |unit
Break-even |point |in |units |- |verified |answersFixed |costs |/ |Contribution |margin |per |unit
CVP |(cost-volume-profit |chart) |- |verified |answershelps |managers |predict |how |changes |in |costs |and |
sales |levels |affect |profit. |also |called |break-even |analysis
Break-even |point |in |dollars |- |verified |answersFixed |costs |/ |contribution |margin |ratio
Dollar |sales |at |target |income: |- |verified |answers(fixed |costs |+ |target |income) |/ |(Contribution |margin |
ratio)
Unit |sales |at |target |income: |- |verified |answers(fixed |costs |+ |target |income) |/ |(contribution |margin |per
|unit)
Margin |of |safety |- |verified |answershow |much |output |or |sales |level |can |fall |before |a |business |reaches |
its |break-even |point/incurs |a |loss
(Expected |sales |- |break |even |sales) |/ |(expected |sales)
Variable |income |statement |- |verified |answers
Fixed |costs |- |verified |answers-remain |unchanged |despite |variations |in |the |volume |of |activity
-does |not |apply |to |the |per |unit |amount |(rather |the |fixed |cost |per |unit |of |output |decreases |as |volume
|increases)
Variable |costs |- |verified |answers-change |in |proportion |to |changes |in |volume |of |activity
-notice |that |variable |cost |per |unit |remains |constant |but |the |total |amount |of |variable |cost |changes |
with |the |level |of |production
Mixed |costs |- |verified |answersincludes |both |fixed |and |variable |cost |components
Step-wise |costs |- |verified |answerswhen |volume |significantly |changes |the |cost |shifts |to |another |level |
for |that |range
