If the variable costs and expenses are deducted from sales, the difference is contribution margin.

Margin of safety is the measure of the effect a percentage change in sales revenue has on profit before taxes

Profit is yield when sales is deducted from total cost and expenses.

Fixed costs are costs that do not change with changing levels of activity.

Cost behavior refers to the way cost change with respect to a change in the activity level.

The magnitude of the operating leverage factor is directly related to the level of fixed cost.

Margin of safety ration plus contribution margin ration is equals to profit ratio

Margin of safety is the difference between actual or planned sales volume and break-even sales

Contribution margin ratio is also called as profit-volume ratio.

CVP Analysis study the effects of output volume on revenue, expenses and net income.

Contribution margin is also known as marginal income.

When the level of sales is at the point where revenue is equals to expenses, contribution margin is met.

Contribution margin ratio is computed when contribution margin is added to sales.

At break-even point, profit is equals to zero.

At break-even point, the fixed cost is always

To lower the breakeven point, you must _______ fixed cost and _______ the contribution margin.

The margin of safety is the key concept of CVP analysis. Therefore, it is

A company will incur losses if their sales gets _______ the breakeven.

Margin of safety ratio is derived by dividing the margin of safety to ______.

The ______ the margin of safety, the higher the actual sales compared to breakeven sales.

There is a/an ________ relationship between fixed cost and contribution margin in order to lower the breakeven point.

It is the amount that sales may decline but will not incur losses.

To compute the operating leverage, ______ must be divided to the net income of a firm.

If the company has a fixed cost amounting to ₱25, 000, variable cost of ₱28,000 and Sales of ₱45,000, how much is the contribution margin?

If the product was sold at ₱150 per unit with a variable cost of ₱60. What is the contribution margin per unit?

If the product was sold at ₱150 per unit with a variable cost of ₱60. What is the contribution margin ratio?

If the contribution margin is ₱59,690 and the net income is ₱12,700. What will be the degree of operating leverage?

What will be the degree of operating leverage if the net income is ₱13,700 and the contribution margin is ₱78,090?

If a firm has a net income of ₱13,700 with degree of operating leverage of 2.4, what is the contribution margin?

It is considered as reflection of what the management think a costs should be.

Variance is derived by subtracting the standard costs from

These are standards that are light but attainable.

Materials, labor and manufacturing overhead are known as

It serve as basis for comparing performance, both expected and actual, over a long period of time.

When the actual costs incurred are less than the standard, the variance is said to be

When the actual costs incurred are greater than the standard, the variance is said to be

It is the difference between actual cost and standard cost of materials used.

When the company incurred overspending, its variance is said to be

The scientifically pre-determined cost of manufacturing a unit of product during specific future period of time.

These are analyzed to provide managers with useful information for measuring efficiency and improving performance.

Standards serve as a compass that guide managers towards improvement.

Variance literally means difference.

Variance literally means difference.

The setting of standard is more on science than art.

Ideal standards is also known as long range standard.

Labor cost variance is the difference between the actual cost and standard cost

Price variance and efficiency variance are the two components of analysis variance.

Normal standards are usually not attainable because they do not allow any work interruptions.

Standard costs are used for reporting, monitoring and controlling business activities.

Labor rate variance and labor usage are the two component of material cost variance

Labor cost variance is the difference between the actual labor and standard labor cost.

It represents the overall plan of the organization for a given budget period.

It is considered as the key stone of the budget structure.

It is an alternative to the fixed budget.

This is a long range budget, prepared to cover plans for as long 5 to 10 years.

This is a long range budget, prepared to cover plans for as long 5 to 10 years.

This is a projection of cost at a particular or one level of production for a definite period of time.

The another term for master budget is known as

 It is the budget prepared using employees at all levels in the organization.

The operating, financial and capital budgets are major composition of

These budgets are often prepared monthly.

 It refers to the plans for the conduct of business for the planning period.

A budget is an instrument of profit and control.

The sales forecast is considered as the cornerstone of budgeting.

Once prepared and approved, a budget should not be revised.

The budget committee is usually composed of the sales manager, the salesmen and the sales clerk.

Only the participation of the top management is needed in formulation of budget.

The budget is only a representation of future plans.

Budget usually emphasizes reasons not results.

A master budget represents a comprehensive expression of management’s plan for the culture.

A budget is a usually monetary terms of desired future results.

It is also known as attainable standards.

It is the expected price for materials per unit.

A favorable variance means that you used more materials than anticipated.

An unfavorable variance means that you used less than anticipated.

An unfavorable variance means that you used more than anticipated.

Type of standards assuming that everything is perfect and usually not attainable.

It serve as target and are useful in motivating standard performance.

It is an expected usage amount paid for materials costs or labor rates.