Match Each Item with the Correct Statement Below

question 115

Multiple Choice

Match each item with the correct statement below.
-Fixed costs that are directly traceable to a given segment and, consequently, disappear if the segment is eliminated.

• A)break-even point
• B)Common fixed expenses
• C)Contribution margin
• D)Direct fixed expenses
• E)Margin of safety
• F)Operating leverage
• G)Degree of operating leverage
• H)Sales mix

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Definitions:

Cost Of Switching

The cost of switching refers to the expenses and inconveniences a customer or company faces when changing products, services, or suppliers, including termination fees, setup costs, and time.

Incremental Cash Inflow

Additional cash earnings a company receives from undertaking certain actions, such as launching a new product or project.

Net 30 Credit Policy

A payment term that allows a customer 30 days to pay the full amount on an invoice without incurring interest or penalties.

Monthly Interest Rate

The interest rate applied to a loan or debt for each month, often used to calculate the interest expense on outstanding debt for the month.