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Figure 19.1
Using Figure 19.1, match the following:
-Sinusoid capillary.
Fixed Costs
Costs that do not change with the level of output or sales over a certain period, such as rent or salaries.
Contribution Margin
The contribution margin represents the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.
Variable Cost
Business expenditures that adjust based on the activity level of the enterprise.
Operating Cash Flow
The cash generated from a company's normal business operations, indicating whether a company can maintain or grow its operations.
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