Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 27

Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note that not all key terms and concepts will be used.

a. Cost–volume–profit analysis	i. Break-even point
b. Cost formula	j. High–low technique
c. Contribution margin	k. Managerial accounting
d. Contribution margin format income statement	l. Management process
e. Linearity assumption	m. Variable cost
f. Contribution margin ratio	n. Fixed cost
g. Operating leverage	o. Relevant range
h. Sales mix	p. Mixed (semivariable) cost
	q. Cost behavior pattern

____________The percentage of each dollar in revenues that is available to cover fixed expenses; revenues minus variable costs, divided by revenues.