Words to learn

Question 1

Breakeven point
Expected value
Choice criterion
Gross margin percentage
Contribution income statement
Margin of safety
Contribution margin
Net income
Contribution margin per unit
Operating leverage
Contribution margin percentage
Outcomes
Contribution margin ratio
Probability
Cost-volume-profit (CVP) analysis
PV graph
Decision table
Revenue driver
Degree of operating leverage
Sales mix
Event
Sensitivity analysis
Expected monetary value
Uncertainty

Answer 1

CH 3

Question 2

Budget
Design of products and processes
Chief financial officer
Distribution
Control
Finance director
Controller
Financial accounting
Cost accounting
Learning
Cost-benefit approach
Line managementCost management
Management accounting
Customer relationship management (CRM)
MarketingCustomer service
Planning
Production
Research and development (R&D)
Staff management
Strategic cost management
Strategy
Supply chain
Sustainability
Total quality management (TQM)
Value chain

Answer 2

CH 1

Question 3

Actual cost
Direct costs of a cost object
Average cost
Direct manufacturing labor costs
Budgeted cost
Direct material costs
Conversion costs
Direct materials inventory
Cost
Factory overhead costs
Cost accumulation
Finished goods inventory
Cost allocation
Fixed costs
Cost assignment
Idle time
Cost driver
Indirect costs of a cost object
Cost object
Indirect manufacturing costs
Cost of goods manufactured
Inventoriable costs
Cost tracing
Manufacturing overhead costs
Merchandising-sector companies
Operating income
Overtime premium
Period costs
Prime costs
Product cost
Relevant range
Revenues
Service-sector companies
Unit cost
Variable cost
Work-in-process inventory
Work-in-process

Answer 3

CH2