Match the Following Terms with Their Definitions

question 9

Multiple Choice

Match the following terms with their definitions.
-Breakeven point

• A)No profit, no loss
• B)Regular expenses of doing business
• C)Dollar profit
• D)Goods or services with a limited life
• E)Price reductions
• F)Price paid to supplier
• G)Cost is base
• H)Selling price is base
• I)Original selling price minus current price
• J)Selling price minus cost
• K)Net sales - cost of goods sold
• L)Difference between selling price and variable cost
• Difficulty: 1 Easy
• Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
• Learning Objective: 08-01 (1)Calculate dollar markup and percent markup on cost.; 08-02 (1)Calculate dollar markup and percent markup on selling price.; 08-03 (1)Calculate markdowns; compare markdowns and markups.; 08-03 (2)Price perishable items to cover spoilage loss.; 08-04 (1)Calculate contribution margin.; 08-04 (2)Calculate breakeven point.
• Bloom's: Remember
• Type: Static
• Accessibility: Keyboard Navigation

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Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers.

Perfect Competition

Perfect Competition is a market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Perfect Competitor

Describes a market scenario where numerous small firms compete against each other, and no single firm can influence the market price of goods and services.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.