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.
a. Cost–volume–profit analysis | i. Break-even point |
b. Cost formula | j. High–low technique |
c. Contribution margin | k. Managerial accounting |
d. Contribution margin format income statement | l. Management process |
e. Linearity assumption | m. Variable cost |
f. Contribution margin ratio | n. Fixed cost |
g. Operating leverage | o. Relevant range |
h. Sales mix | p. Mixed (semivariable) cost |
| q. Cost behavior pattern |
____________The concept that operating income changes proportionately more than revenues for any given change in revenues.
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