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.

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2
Q

cost-volume-profit (CVP) income statement

A

classifies costs as variable or fixed and calculates a contribution margin.

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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.

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