3. The sales level at which operating income is zero. Drop in sales a company can absorb without incurring an operating 4. loss. а. вreaкeverт d. Margin of safety 5. Combination of products that make up total sales. f. Sales mix 6. Net sales revenue minus variable costs. 7. Describes how a cost changes as volume changes. 8. Costs that change in total in direct proportion to changes in volume. The band of volume where total fixed costs and variable cost per unit 9. remain constant.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 1 Part 2

Match the following terms with the correct definitions:
The sales level at which operating income is zero.
Drop in sales a company can absorb without incurring an operating
4. loss.
3.
а. Вreaкevert
d. Margin of safety
5. Combination of products that make up total sales.
f. Sales mix
6. Net sales revenue minus variable costs.
7. Describes how a cost changes as volume changes.
8. Costs that change in total in direct proportion to changes in volume.
The band of volume where total fixed costs and variable cost per unit
9. remain constant.
Transcribed Image Text:Match the following terms with the correct definitions: The sales level at which operating income is zero. Drop in sales a company can absorb without incurring an operating 4. loss. 3. а. Вreaкevert d. Margin of safety 5. Combination of products that make up total sales. f. Sales mix 6. Net sales revenue minus variable costs. 7. Describes how a cost changes as volume changes. 8. Costs that change in total in direct proportion to changes in volume. The band of volume where total fixed costs and variable cost per unit 9. remain constant.
a. Breakeven
b. Contribution margin
c. Cost behavior
d. Margin of safety
e. Relevant range
f. Sales mix
g. Fixed costs
Transcribed Image Text:a. Breakeven b. Contribution margin c. Cost behavior d. Margin of safety e. Relevant range f. Sales mix g. Fixed costs
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