Lernkarten

Julia Rawyler
Karten 22 Karten
Lernende 1 Lernende
Sprache Deutsch
Stufe Universität
Erstellt / Aktualisiert 01.06.2021 / 28.06.2021
Lizenzierung Keine Angabe
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0 Exakte Antworten 7 Text Antworten 15 Multiple Choice Antworten
Fenster schliessen

The CVP income statement classifies costs as variable or fixed and computes a contribution margin.

True

False

Fenster schliessen

The margin of safety indicates how much sales must increase before a company will be operating at a profit.

True

False

Fenster schliessen

Sales mix is the relative percentage in which each product is sold when a company sells more than one product.

True

False

Fenster schliessen

When multiple products exist, the break-even point in dollars is computed by dividing fixed costs by the weighted-average contribution margin.

True

False

Fenster schliessen

When a company has limited resources, management must decide which product to make and sell in order to maximize contribution margin ratio.

True

False

Fenster schliessen

Contribution margin per unit of limited resource is obtained by dividing the contribution margin per unit of each product by the number of units of the limited resource required for each product.

True

False

Fenster schliessen

Operating leverage refers to the extent to which a company’s net income reacts to a given change in production.

True

False

Fenster schliessen

Companies that have higher fixed costs relative to variable costs have higher operating leverage.

True

False