Match Each Item with the Correct Statement Below

question 142

Multiple Choice

Match each item with the correct statement below.
-A measure of the sensitivity of profit changes to changes in sales volume.

• 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:

Financial Statement Column

A column in a financial statement that categorizes financial data, such as assets, liabilities, revenues, or expenses, to help analyze financial health.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the accounts for the next period.

Owner's Equity Statement

A financial statement that shows the changes in the equity of a company's owner(s) over a period of time.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.