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Match the Following Terms with Their Definitions

Question 35

Matching

Match the following terms with their definitions.

Premises:
Contribution margin
Relevant range
Variable costs
Break-even point
Fixed costs
Responses:
Remain the same in total dollar amount as the level of activity changes
A specific activity range over which the cost changes are of interest.
Where a business’s revenues exactly equal costs
Vary in proportion to changes in activity levels.
The excess of sales revenues over variable costs

Correct Answer:

Contribution margin
Relevant range
Variable costs
Break-even point
Fixed costs
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