Match Each Item with the Correct Statement Below

question 145

Multiple Choice

Match each item with the correct statement below.
-The use of fixed costs to extract higher percentage changes in profits as sales activity changes.

• 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

Learn how to predict overbooked situations and calculate net revenue in reservation systems using simulations.

Comprehend the use of various Crystal Ball tools (e.g., spider chart, sensitivity chart) to analyze and display the impact of model variables.

Practice fitting distributions with Crystal Ball and using decision tables for analysis to maximize profits or other metrics.

Understand the basics of double-entry accounting and its application.

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Definitions:

Price Elasticity

A tool for measuring how changes in price impact the demand for a particular item.

Excise Tax

Excise Tax is a specific tax levied on particular goods, services, or transactions, often included in the price of products like gasoline, tobacco, and alcohol.

Income Elasticity

A gauge of the extent to which the consumption of a good or service is affected by alterations in the income levels of consumers.

Inferior Good

A type of good for which demand decreases when consumer income rises, contrary to normal goods where demand increases with rising income.