valuve costs stuff like that

Question 1

Marketing Intermediary’s and Value

Answer 1

create value by providing efficiency, convenience, and cost savings and it is part of the business’s value chain

Question 2

Classification of Costs

Answer 2

variable and fixed

Question 3

variable costs

Answer 3

vary directly with the amount sold

Question 4

fixed costs

Answer 4

do not vary with the amount sold

Question 5

Operating Profit

Answer 5

Sales- Cost of Goods Sold

Question 6

Contribution Margin

Answer 6

amount the business earns from each sale after paying its variable costs
CM= P-VC
P= price per unit of sales
VC= variable cost per unit of sales

Question 7

Break-even Point

Answer 7

Break-even Point
number of sales a business must achieve to generate a zero operating profit
BE= FC/CM
FC= fixed costs
CM= contribution margin

Question 8

Cost-volume-profit Analysis

Answer 8

analysis of different pricing alternatives on the business’s profitability

Question 9

Cost-plus pricing

Answer 9

designed to provide the business sufficient sales revenue to pay its costs, and create a sufficient operating profit

Question 10

Pricing-on-the-margin

Answer 10

when a business focuses only on variable costs (marginal costs)

Question 11

Marginal Revenue

Answer 11

(price per sale) businesses that price products on the margin require a higher contribution margin to cover the unallocated fixed costs

Question 12

Total Costs

Answer 12

variable costs + fixed costs)

Question 13

Average cost of a sale

Answer 13

AC=TC/Sales
TC= total cost