Level of sales where profits equal zero. Total sales = totale expenses.

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Contribution Margin Method

Method of computing break even point wher FIXED EXPENSES /CONTRIBUTION MARGIN PER UNIT.

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Contribution Margin Ratio (CM)

Ratio computed by dividing CONTRIBUTION MARGIN/DOLLAR SALES.

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Cost-volume-profit (CVP) Graph

Graphical representation of the relationships between and organization's revenues, costs, and profits on the one hand and its sales volume on the other hand.

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Degree of Operating Level

Measure at given level of sales, of how a percentage change in sales wll affect profits. The degree of operating leverage is computed by dividing CM/NOI

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Equation Method

Method of computing break even point that relies on the equation SALES=V EXPENSES + FIXED EXPENSES + PROFITS.

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Incremental Analysis

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

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Margin of Safety

The excess of budgeted (or actual) dollars sales over the break even dollar sales.

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Operating Leverage

A measure of how sensitive NOI is to a given % change in dollar sales. Computed by dividing the CM/NOI

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Sales Mix

Relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

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Variable Expense Ratio

Ratio computed by dividing V EXPENSE / DOLLAR SALES

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CARDSLIST? pages PRINTEXIT

Break-Even Point

Level of sales where profits equal zero. Total sales = totale expenses.

Contribution Margin Method

Method of computing break even point wher FIXED EXPENSES /CONTRIBUTION MARGIN PER UNIT.

Contribution Margin Ratio (CM)

Ratio computed by dividing CONTRIBUTION MARGIN/DOLLAR SALES.

Cost-volume-profit (CVP) Graph

Graphical representation of the relationships between and organization's revenues, costs, and profits on the one hand and its sales volume on the other hand.

Generated by
Koofers.com

Degree of Operating Level

Measure at given level of sales, of how a percentage change in sales wll affect profits. The degree of operating leverage is computed by dividing CM/NOI

Equation Method

Method of computing break even point that relies on the equation SALES=V EXPENSES + FIXED EXPENSES + PROFITS.

Incremental Analysis

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

Margin of Safety

The excess of budgeted (or actual) dollars sales over the break even dollar sales.

Generated by
Koofers.com

Operating Leverage

A measure of how sensitive NOI is to a given % change in dollar sales. Computed by dividing the CM/NOI

Sales Mix

Relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Variable Expense Ratio

Ratio computed by dividing V EXPENSE / DOLLAR SALES

Generated by
Koofers.com

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Break-Even Point

Level of sales where profits equal zero. Total sales = totale expenses.

Contribution Margin Method

Method of computing break even point wher FIXED EXPENSES /CONTRIBUTION MARGIN PER UNIT.

Contribution Margin Ratio (CM)

Ratio computed by dividing CONTRIBUTION MARGIN/DOLLAR SALES.

Cost-volume-profit (CVP) Graph

Graphical representation of the relationships between and organization's revenues, costs, and profits on the one hand and its sales volume on the other hand.

Degree of Operating Level

Measure at given level of sales, of how a percentage change in sales wll affect profits. The degree of operating leverage is computed by dividing CM/NOI

Equation Method

Method of computing break even point that relies on the equation SALES=V EXPENSES + FIXED EXPENSES + PROFITS.

Incremental Analysis

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

Margin of Safety

The excess of budgeted (or actual) dollars sales over the break even dollar sales.

Operating Leverage

A measure of how sensitive NOI is to a given % change in dollar sales. Computed by dividing the CM/NOI

Sales Mix

Relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Variable Expense Ratio

Ratio computed by dividing V EXPENSE / DOLLAR SALES

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