CHAPTER 1 - Identification

Question 1

The __________ is where total revenues equal total costs.

Answer 1

break-even point

Question 2

The __________ ratio expresses variable costs in terms of sales dollars

Answer 2

variable cost

Question 3

In cost-volume-profit analysis income taxes __________ the break even point.

Answer 3

raise

Question 4

Target after-tax profit must be converted into __________ profit to calculate units or revenue needed.

Answer 4

before-tax

Question 5

In multiple-product analysis, direct fixed costs can be __________ to each segment.

Answer 5

traced

Question 6

Increased sales of high contribution margin items __________ the break-even point.

Answer 6

decrease

Question 8

On a profit-volume graph, the __________ line intersects the horizontal axis at the break-even point.

Answer 8

profit

Question 8

When a company sells more units than the break-even point, the __________ are positive.

Answer 8

profits

Question 8

If all else is the same, if the break-even point increases, then the variable cost per unit must have __________ .

Answer 8

increased

Question 9

The use of fixed costs to increase the percentage changes in profits as sales activities change is called the __________
leverage.

Answer 9

operating