Cost behaviour and break-even analysis
- Created by: josief95
- Created on: 13-12-15 13:37
Other questions in this quiz
2. Historic cost
- Cost that has been impacted by inflation
- Cost already incurred
- Cost that has gone up since original price
3. Units to produce and sell to achieve a Target Profit
- Variable Cost + Fixed cost / Contribution per unit
- Fixed cost + Target Profit / Contribution per unit
- Variable Cost + Target Profit / Contribution per unit
4. Contribution margin ratio =
- contribution / sales revenue x 100%
- contribution / fixed cost per unit x 100%
- contribution / cost revenue x 100%
- contribution / cost of sales x 100%
5. Fixed cost
- Remain constant (fixed) when changes occur to the volume of activity
- Vary according to the volume of activity
- It is a mixture of fixed and variable cost
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