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Cost Volume Profit

Professor Leticia Togba, CPA
ACCT 2302 - Principles of Managerial Acctng
Ch. 18 (3E) and Ch. 19 (2E)
Across
_______ Costs: Costs that contain both a variable and a fixed-cost element and change in total, but not proportionately with changes in the activity level.
______-_______ Method: A mathematical method that uses the total costs incurred at high and low levels of activity to classify mixed costs into fixed and variable components.
Cost Behavior __________: The study of how specific costs respond to changes in the level of business activity.
_________ Range: The range of the activity index over which the company expects to operate during the year.
__________ Margin: The amount of revenue remaining after deducting variable costs.
_______-_______ Point: The level of activity at which total revenue equals total cost.
_________ Net Income: The income objective set by management.
Down
_______ Costs: Costs that remain the same in total regardless of changes in activity level.
_______ of Safety: The difference between actual or expected sales and sales at the break-even point.
________ Index: The _________ that causes changes in the behavior of costs.
________-_____ Analysis: The study of the effects of changes in costs and volume on a company's profits.
Contribution Margin _______: The percentage of each dollar of sales that is available to apply to fixed costs and contribute to net income.
_________ Costs: Costs that vary in total directly and proportionately with changes in the activity level.
______ Contribution Margin: The amount of revenue remaining per unit after deducting variable costs.