chpt 5 managerial Word Scramble

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Question	Answer
List the cost estimation methods from the least precise to the most precise with the least precise on top	Scatter diagrams High-low method Least-Squares regression
To figure contribution margin ratio	amount of sales-variable cost/amount of sales =% (contribution margin ratio)
When using the high-low method, the estimated line of cost behavior connects the :	two costs at the highest and lowest volumes
Types of fixed costs	Depreciation Property taxes
Types of Variable costs	Direct Materials Shipping costs
Types of Mixed Cost	Water and sewer sales rep's pay
The break-even point is the sales level at which a company	has a profit of $0 and contribution margin equals fixed costs.
The amount by which a product's unit-selling price exceeds its total unit variable cost is the	Contribution margin per unit
Cost-volume-profit analysis helps managers predict how changes in ___________and __________levels affect income.	Costs and sales
A company has a margin of safety of 20%. If expected sales are $50,000, then break-even sales are:	$40,000 Found by 50000*20%=10,000 then subtract the 10,000 from the 50,000
How to find Contribution Margin Approach	Sales revenue per unit minus variable costs per unit = Contribution margin per unit
Because of its usefulness in CVP analysis, managers generally use an income statement in which format?	Contribution margin income statement
Conventional CVP analysis requires management to classify all costs as either _____ or ______ with respect to production or sales volume.	variable or fixed
Which of the following is the correct statement about variable costs?	The variable cost per unit does not change when volume changes
On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost line represents:	total profit to the right of the intersection and Total loss to the left of the intersection
The contribution margin ratio is interpreted as the percent of:	each sales dollar that remains after deducting unit varable cost
On a CVP chart, the line which crosses the vertical axis at the level of fixed costs and slopes upwards represents_________costs.	Total
Contribution margin per unit contributes to covering _____costs and then generating ________ on a per unit basis.	Fixed profits

Created by: smcdo11