1
Q
Contribution
A
Contribution = sales - variable costs
2
Q
What does the total contribution show
A
The effect of profit of selling one extra unit
3
Q
CVP analysis assumptions
A
- variable cost per unit is constant
- total variable costs increase and decrease with sales volume
- total fixed costs do not change
- average selling price per unit is constant
- total sales revenue increases and decreases with same volume
4
Q
C/S ratio
A
Contribution per unit / sales price per unit
5
Q
Break even units
A
Fixed costs / contribution per unit
6
Q
Break even revenue
A
Fixed costs / CS ratio
7
Q
Break even price
A
(available profit + current cost) / total usage
8
Q
Margin of safety in units
A
Margin of safety = units sold - break even units
9
Q
Margin of safety in pounds
A
Sales revenue - break even revenue
TC MIT
flashcards
Decks in class (18)
# Cards
-
Module 1 - Business Information6
-
Module 2- Classification of Costs29
-
Module 3 - Contribution9
-
Module 4 - Marginal Costing2
-
Module 5 - Limiting Factors6
-
Module 7 - Variance Analysis10
-
Module 8 - Forecasting6
-
Module 9 - Budgeting Techniques20
-
Module 10 - Overhead Accounting4
-
Module 11 - Absorption Costing13
-
Module 12 - Activity Based Costing5
-
Module 13 - Non-financial Performance Indicators11
-
Module 14 - Transfer Pricing6
-
Module 15 - Types of Information Systems23
-
Module 16 - Protecting Information16
-
Module 17 - Data Analytics11
-
Module 18 - Communication and Emerging Technologies6
-
Module 19 - Business Application of Technologies14
