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Match the Following Terms to Their Description

Question 22

Matching

Match the following terms to their description.

Premises:

Responses:

Mixed costs

Costs that contain a variable component and a fixed component

Break-even analysis

Expenses that never change regardless of how much product is sold or how many services are rendered

Fixed costs

Costs that change based on how many products are sold or services are rendered

Break-even point

The sales level at which revenue equals total costs

Variable costs

A cost-volume-profit analysis tool that calculates the break-even point in sales volume or dollars,estimates profit or loss at any level of sales volume,and helps in setting prices

Premises:

Mixed costs

Break-even analysis

Fixed costs

Break-even point

Variable costs

Responses:

Costs that contain a variable component and a fixed component

Expenses that never change regardless of how much product is sold or how many services are rendered

Costs that change based on how many products are sold or services are rendered

The sales level at which revenue equals total costs

A cost-volume-profit analysis tool that calculates the break-even point in sales volume or dollars,estimates profit or loss at any level of sales volume,and helps in setting prices

Correct Answer:

Premises:

Responses:

Mixed costs

Break-even analysis

Fixed costs

Break-even point

Variable costs