Matching Following are a number of key terms and concepts introduced in thechapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note thatnot all key terms and concepts will be used. Answers are provided at the end of thischapter.a. Cost–volume–profit analysisb. Cost formulac. Contribution margind. Contribution margin formatincome statemente. Linearity assumptionf. Contribution margin ratiog. Operating leverageh. Sales mixi. Break-even pointj. High–low techniquek. Managerial accountingl. Management processm. Variable costn. Fixed costo. Relevant rangep. Mixed (semivariable) costq. Cost behavior pattern____ 1. The proportion of total sales represented by various products or categoriesof products.____ 2. The difference between revenues and variable costs.____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.____ 4. The amount of revenue required to have neither operating income nor operating loss.____ 5. The percentage of each dollar in revenues that is available to cover fixedexpenses; revenues minus variable costs, divided by revenues.____ 6. An income statement presentation in which variable costs are subtractedfrom revenues to show contribution margin, from which fixed costs aresubtracted to determine operating income.____ 7. Analysis of the impact on profit of volume and cost changes using knowledge about the behavior patterns of the costs involved.____ 8. An arithmetic expression that reflects the fixed and variable elements ofa cost.____ 9. The range of activity over which the fixed or variable cost behavior patternexists.____ 10. A cost that has both fixed and variable elements.____ 11. A cost that does not change in total as the level of activity changes within arelevant range.____ 12. Planning, organizing, and controlling the activities of an organization so itcan accomplish its purpose.
Matching Following are a number of key terms and concepts introduced in the
chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note that
not all key terms and concepts will be used. Answers are provided at the end of this
chapter.
a. Cost–volume–profit analysis
b. Cost formula
c. Contribution margin
d. Contribution margin format
income statement
e. Linearity assumption
f. Contribution margin ratio
g. Operating leverage
h. Sales mix
i. Break-even point
j. High–low technique
k. Managerial accounting
l. Management process
m. Variable cost
n. Fixed cost
o. Relevant range
p. Mixed (semivariable) cost
q. Cost behavior pattern
____ 1. The proportion of total sales represented by various products or categories
of products.
____ 2. The difference between revenues and variable costs.
____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.
____ 4. The amount of revenue required to have neither operating income nor operating loss.
____ 5. The percentage of each dollar in revenues that is available to cover fixed
expenses; revenues minus variable costs, divided by revenues.
____ 6. An income statement presentation in which variable costs are subtracted
from revenues to show contribution margin, from which fixed costs are
subtracted to determine operating income.
____ 7. Analysis of the impact on profit of volume and cost changes using knowledge about the behavior patterns of the costs involved.
____ 8. An arithmetic expression that reflects the fixed and variable elements of
a cost.
____ 9. The range of activity over which the fixed or variable cost behavior pattern
exists.
____ 10. A cost that has both fixed and variable elements.
____ 11. A cost that does not change in total as the level of activity changes within a
relevant range.
____ 12. Planning, organizing, and controlling the activities of an organization so it
can accomplish its purpose.
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