Question

Match the definition to the proper term.

Group of answer choices

The sales level at which operating income is zero: Total revenues = Total expenses.

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

Sales revenue minus variable expenses.

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

An income statement that groups costs by behavior rather than function; it can be used only by internal management.

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

Expresses the relationships among costs, volume, and profit or loss

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

A “what-if” technique that asks what results will be if actual prices or costs change or if an underlying assumption changes.

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

The excess of the unit sales price over the variable cost per unit

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

Ratio of contribution margin to sales revenue.

      [ Choose ]            unit contribution margin            contribution margin ratio            operating leverage            sensitivity analysis            net income            breakeven point            margin of safety            contribution margin income statement            gross margin            total contribution margin            cost-volume-profit (CVP) analysis      

Excess of expected sales over breakeven sales

Answer 1

The sales level at which operating income is zero: Total revenues = Total expenses.	breakeven point
Sales revenue minus variable expenses.	total contribution margin
An income statement that groups costs by behavior rather than function; it can be used only by internal management.	contribution margin income statement
Expresses the relationships among costs, volume, and profit or loss	cost-volume-profit (CVP) analysis
A “what-if” technique that asks what results will be if actual prices or costs change or if an underlying assumption changes.	sensitivity analysis
The excess of the unit sales price over the variable cost per unit	unit contribution margin
Ratio of contribution margin to sales revenue.	contribution margin ratio
Excess of expected sales over breakeven sales	margin of safety