Questions (Frequently Tested)
with Verified Answers Graded
A+
CVP ANALYSIS - Answer: management's study of the relationship among cost, volume, profit.
CVP ANALYSIS - Answer: this study is used in planning, controlling, evaluating the objective of
the entity
BREAK EVEN POINT - Answer: indicates the point at which the entity neither makes a profit nor
suffers a loss
BREAK EVEN POINT - Answer: point where sales less variable cost and fixed cost result in zero
profit
CONTRIBUTION MARGIN - Answer: excess of sales over variable cost
sales revenue - variable cost
sales revenue - variable cost - Answer: contribution margin formula
cm/sales revenue - Answer: CONTRIBUTION MARGIN RATIO