Lesson1:Costing and Pricing

What are costs that do not change with production volume called?

• Variable Costs

• Total Costs

• Fixed Costs

• Marginal Costs

Which type of costs change with the level of production?

• Fixed Costs

• Variable Costs

• Total Costs

• Contribution Margin

What is the sum of fixed and variable costs?

• Marginal Cost

• Break-even Point

• Total Cost

• Gross Profit

At what production level does total revenue equal total cost?

• Marginal Cost

• Contribution Margin

• Break-even Point

• Gross Profit

What is the difference between selling price and variable costs per unit?

• Gross Profit

• Marginal Cost

• Contribution Margin

• Economies of Scale

What is the percentage added to the cost price to determine the selling price?

• Profit

• Markup

• Marginal Cost

• Contribution Margin

What do you get when revenue minus the cost of goods sold?

• Break-even Point

• Gross Profit

• Contribution Margin

• Economies of Scale

What is the additional cost of producing one more unit called?

• Marginal Cost

• Total Cost

• Fixed Costs

• Variable Costs

What is the term for the cost advantage gained from producing larger quantities?

• Utilization

• Break-even Point

• Economies of Scale

• Contribution Margin

• Profitability

Which pricing strategy involves adding a markup to the cost of production?

• Value-based pricing

• Competitive pricing

• Cost-plus pricing

• Activity-based costing