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Flashcards in Chapter 3 Deck (11):
1

Volume level where profits equal zero

Break-Even Point

2

Contribution margin as a percentage of sales revenue

Contribution Margin Ratio

3

Proportion of fixed and variable costs to total costs of an organization

Cost Structure

4

Study of the relations among revenues, costs, and volume and their effect on profit

Cost-Volume-Profit (CVP) Analysis

5

The excess of projected or actual sales over the break-even volume

Margin of Safety

6

The excess of projected or actual sales over the break-even volume expressed as a percentage of break-even volume

Margin of Safety Percentage

7

Extent to which an organization's cost structure is made up of fixed costs

Operating Leverage

8

Operating profit equals total revenue less total costs

Profit Equation

9

Version of cost-volume-profit analysis using a single profit line

Profit-Volume Analysis

10

Difference between revenues and total variable costs

Total Contribution Margin

11

Difference between revenues per unit (Price) and variable cost per unit

Unit Contribution Margin