Cost-Volume-Profit Analysis – Flashcards
10 test answers
Unlock all answers in this set
Unlock answers 10question
Sensitivity analysis
answer
A technique for determining what would happen in a decision analysis if a key prediction or assumption proves to be wrong.
Unlock the answer
question
Total contribution margin
answer
Total sales revenue minus total variable expenses.
Unlock the answer
question
Unit contribution margin
answer
Sales price minus the unit variable cost. This is the amount that each unit "contributes" to covering fixed costs.
Unlock the answer
question
Weighted-average unit contribution margin
answer
Average of a firm's several products' unit contribution margins, weighted by the relative sales proportion of each product.
Unlock the answer
question
Cost-volume-profit (CVP) graph
answer
A graphical expression of the relationships between sales volume, expenses, revenue, and profit.
Unlock the answer
question
Cost-Volume-Profit Analysis (topic)
answer
A study of the relationships between sales volume, expenses, revenue, and profit. MORE:Covered in session 3.
Unlock the answer
