The Term(s)used to Describe the Behavior and Relationship Among Elements

question 124

Multiple Choice

The term(s) used to describe the behavior and relationship among elements as changes occur in units sold,selling price,variable cost per unit,or fixed costs of product is:

• A)event.
• B)revenues.
• C)probability.
• D)contribution.
• E)cost volume profit analysis (CVP).

---

Definitions:

Contribution Margin

Contribution Margin is the amount of revenue remaining after deducting variable costs, which can then be used to cover fixed costs or generate profit.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in the net income or loss.

Contribution Format

A type of income statement where costs are divided into variable and fixed categories, enabling analysis of contribution margin.

Variable Expense Ratio

The ratio of variable costs to total sales, indicating how variable expenses change with sales levels.