Question

Please match appropriate letters and number with definition.

A. Account Analysis B. Contribution Margin C. Contribution Margin ratio  D. Constraint   E. High-Low Method  F. Margin of safety  G. Profit Equation H. Relevant Range

I. Semi variable   J. Step Cost    K. "what if" analysis   L. Break even point M. Contribution margin per unit N. Contribution margin per unit of constraint O. Discretionary fixed cost

P. Fixed cost     Q. Mixed Cost   R. Operating leverage X. Regression analysis Y. Scatter graph Z. Variable Cost   0 Weighted average contribution margin per unit

____Where sales and total costs are equal

____The cost per unit varies inversely to changes in activity

____the total cost varies in direct proportion to changes in activity

____pertains to the relationship between fixed and variable costs

____Fixed costs that management can easily change in the short run

____contains both a fixed and a variable cost

____used in the denominator of the break even point when multiproduct exists

____unit contribution margin divided by amount of scarce resource per unit

____provides the most accurate cost equation of a mixed cost

____used to determine a mixed cost equation by visually fitting a line to sample data points.

____the difference between the sales and variable costs

____profit = SP (x) - VC (x) - FC

____another name for mixed cost

____the difference between actual sales and break-even sales

____a scarce resource

____a cost that is fixed within a range of activity but increases to higher level when the upper limit of the range is exceeded

____determining that will happen if a particular action is taken

____the span of activity for which estimates and predictions are likely to be accurate

____contribution margin divided by sales

used to estimate the fixed and variable components of a mixed cost based on only two data points

Answer 1

Break even point - Where sales and total costs are equal

Fixed cost - The cost per unit varies inversely to changes in activity

Variable Cost - the total cost varies in direct proportion to changes in activity

Operating leverage - pertains to the relationship between fixed and variable costs

Discretionary fixed cost - Fixed costs that management can easily change in the short run

Mixed cost - contains both a fixed and a variable cost

Weighted average contribution margin per unit - used in the denominator of the break even point when multi product exists

Contribution margin per unit of constraint - unit contribution margin divided by amount of scarce resource per unit

Regression analysis - provides the most accurate cost equation of a mixed cost

Scatter graph - used to determine a mixed cost equation by visually fitting a line to sample data points.

Contribution Margin - the difference between the sales and variable costs

Profit Equation - profit = SP (x) - VC (x) - FC

Semi variable - another name for mixed cost

Margin of safety - the difference between actual sales and break-even sales

Constraint - a scarce resource

Step cost - a cost that is fixed within a range of activity but increases to higher level when the upper limit of the range is exceeded

"what if" analysis - determining that will happen if a particular action is taken

Relevant range - the span of activity for which estimates and predictions are likely to be accurate

Contribution Margin ratio - contribution margin divided by sales

High-Low Method - used to estimate the fixed and variable components of a mixed cost based on only two data points

Kindly comment if you need further assistance. Thanks