Question

2. Match the items in the two columns below by entering the appropriate code letter in the space provided A. Mixed costs B. Variable costs C. Fixed costs D. High-low Method E. Relevant range F. G. H. 1. Break-even point Contribution Margin Margin of Safety Contribution Margin Ratio The amount of revenue remaining after deducting the total variable cost of sales. 2. 1. Costs that contain both a variable and a fixed element. 3. The percentage of sales dollars available to cover fixed costs and produce income is also referred to as the 4. The difference between actual or expected sales and sales at the break-even point. 5. Costs that vary in total directly and proportionately with changes in the activity level. 6. The level of activity at which total revenues equal total costs. 7. The range over which the company expects to operate during the year. 8. Costs that remain the same in total regardless of changes in the activity level 9. A method that uses the total costs incurred at the high and low levels of activity. Do 3 4

Answer 1

1. G. Contribution Margin

2. A. Mixed costs

3. I. Contribution Margin Ratio

4. H. Margin of Safety

5. B. Variable costs

6. F. Break Even point

7. E. Relevant range

8. C. Fixed costs

9. D. High-Low Method