Most Gangs Are Not , and Many Gang Members May

question 58

Short Answer

Most gangs are not , and many gang members may actually engage in positive social behaviors.

Understand the relationship between fixed expenses, margin of safety, and profit.

Comprehend the concept and calculation of the break-even point.

Differentiate between absorption costing and contribution margin income statement methodologies.

Know the impact of cost structure on net income volatility.

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Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy in a given period.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, decreasing as production increases.

Annual Fixed Cost

The total of all business expenses that remain constant regardless of any change in production levels or sales volume over a year.

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or production process over a specific period.