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chapter 18
Cost-Volume-Profit
and Business Scalability
goals discussion
goals
achievement fill
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multiple
choice
problems
check list and key terms
1. The study of interrelationships among cost and volume is termed analysis.
2. varies in direct proportion to a change in activity base.
3. The area of activity where a specified cost relationships is expected to hold true is known as the .
4. Cost functions which change only when a sizable change in volume is experienced are called costs.
5. fixed costs arise from an organization's commitment to engage in operations, whereas fixed costs are those that originate from top management's yearly spending decisions.
6. Another name for mixed costs is costs.
7. A graphical representation of observed relationships between costs and activity levels is termed a .
8. The method focuses on only two data points when analyzing costs.
9. Selling price minus variable costs is termed the margin.
10. On a break-even chart the amount by which the total revenue line is above the total cost line is the amount of .
11. The amount of sales necessary to produce a particular level of income, often called the income, can be determined by using cost-volume-profit analysis.
12. Fixed costs divided by unit contribution margin equals break-even sales in .