ACC 206 Ch 2 Vocab

how the activities of an organization affects its costs

measures of activities that require the use of resources and thereby cause costs

changes in direct proportion to changes in the cost driver

changes in the cost driver do not immediately affect

the limit of cost-driver level within which a specific relationship between costs and the cost driver is valid

the study of the effects of output volume on revenues, expenses, and net income.

the level of sales at which the revenue equals expenses

sales price - variable cost per unit

total number of units sold x unit contribution margin

the ratios of the sale attributed to variable cost and contribution margin

the relative proportions or combinations of quantities of different products that constitute total sales

the change in total results ( such as revenue, expenses, or income) under a new condition in comparison with some given or known condition

the firm's ratio of fixed to variable costs

shows how far sales can fall below the planned level of sales before losses occur

the excess of sales over the cost of goods sold