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Part A) Cost behavior is the
-amount of sales necessary to achieve a specific profit
-difference between sales revenue and fixed costs
-way in which costs change when the activity level changes
-same as absorption costing
Part B) Total sales - total variable costs is equal to
-fixed costs
-net income
-margin of safety
-total contribution margin
Part C) A company's operating leverage refers to
-decisions about the use of debt vs equity
-how a company budgets for future operations
-the difference between actual or budgeted sales and the break even point
-the extent to which fixed costs are used to operate a business
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