# Question: Match the following terms with the correct definitions 1 Costs

Match the following terms with the correct definitions:

1. Costs that do not change in total over wide ranges of volume.

2. Technique that estimates profit or loss results when conditions change.

3. The sales level at which operating income is zero.

4. Drop in sales a company can absorb without incurring an operating loss.

5. Combination of products that make up total sales.

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.

9. The band of volume where total fixed costs and variable cost per unit remain constant.

a. Breakeven

b. Contribution margin

c. Cost behavior

d. Margin of safety

e. Relevant range

f. Sales mix

g. Fixed costs

h. Variable costs

i. Sensitivity analysis

1. Costs that do not change in total over wide ranges of volume.

2. Technique that estimates profit or loss results when conditions change.

3. The sales level at which operating income is zero.

4. Drop in sales a company can absorb without incurring an operating loss.

5. Combination of products that make up total sales.

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.

9. The band of volume where total fixed costs and variable cost per unit remain constant.

a. Breakeven

b. Contribution margin

c. Cost behavior

d. Margin of safety

e. Relevant range

f. Sales mix

g. Fixed costs

h. Variable costs

i. Sensitivity analysis

## Relevant Questions

Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold. Explain yourreason.For its top managers, Worldwide Travel formats its income statement as follows:WORLDWIDE TRAVELContribution Margin Income StatementThree Months Ended March 31, 2014Sales Revenue ............. $ 317,500Variable Costs ...Rodneyâ€™s Repair Shop has a monthly target profit of $ 15,000. Variable costs are 75% of sales, and monthly fixed costs are $ 10,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its ...The budgets of four companies yield the following information:Requirements 1. Fill in the blanks for each missing value. (Round the contribution margin to the nearest cent.) 2. Which company has the lowest breakeven point ...You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its sales force. The ...Post your question