AC239 Unit 5 Glossary - High-Low Method: A technique that...

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AC 239 Unit 5 Glossary 08/17/09 Break-Even Point: The level of business operations at which revenues and expired costs are equal Contribution Margin: Sales less variable costs and variable selling and administrative expenses Cost-Volume-Profit analysis : The systematic examination of the relationships among selling prices, volume of sales and production, costs, expenses, and profits Fixed Costs: Costs that tend to remain the same in amount, regardless of variations in the level of activity
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Unformatted text preview: High-Low Method: A technique that uses the highest and lowest total costs as a basis for estimating the variable cost per unit and the fixed cost component of a mixed cost Margin of Safety: Indicates the possible decrease in sales that may occur before an operating loss results Mixed Costs: A cost with both variable and fixed characteristics, sometimes called a semivariable or semifixed cost Variable Costs: Costs that vary in total dollar amount as the level of activity changes...
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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