Exam 2 Flashcards Preview

Managerial accouting > Exam 2 > Flashcards

Flashcards in Exam 2 Deck (9)
Loading flashcards...
1

Which of the following would be a variable cost for a dentist's office?


d. Cost of teeth cleaning material

2

Per-unit fixed costs:

. Can be misleading and lead to poor decisions.

3

Per-unit variable costs:

Remain constant within the relevant range.

4

The formula for a mixed cost is:

Total cost = total fixed cost + (variable rate x amount of output)

5

Total contribution margin divided by total sales is the

Contribution margin ratio.

6

If the contribution margin ratio increases, the break-even point in sales dollars will

decrease

7

If fixed costs increase, the break-even point in units will

increase

8

The margin of safety in dollars is

Expected sales minus sales at break-even.

9

____ can be measured for a given level of sales by taking the ratio of contribution margin to operating income.

degree of operating leverage