Chapter 6 Cost Volume Profit Analysis Flashcards
1
Q
Cost volume profit analysis
A
the study of the effects that changes in costs and volume have on a company’s profits.
2
Q
cost-volume-profit (CVP) income statement
A
classifies costs as variable or fixed and calculates a contribution margin.
3
Q
Contribution Margin
A
is the amount of revenue that remains after variable costs have been deducted. It is often stated both as a total amount and on a per-unit basis.