11.Economies of scale can be achieved by using facilities more intensively.
12.The range over which output may be expected to vary is called the relevant range.
13.The volume of output which causes fixed costs to be equal in amount to total revenue is called the break-even point.
14.The break-even point is the level of activity at which operating income is equal to cost of goods sold.
15.The contribution margin is the difference between total revenue and fixed costs.
16.The higher the unit contribution margin, the higher the volume of unit sales required to cover a given amount of fixed costs.
17.Contribution margin is total revenue less variable costs.
18.The contribution margin is the amount by which revenue exceeds variable costs.
19.Contribution margin ratio is equal to contribution margin per unit divided by unit sales price.
20.The margin of safety sales volume times the contribution margin ratio equals operating income.
21.Margin of safety is the dollar amount by which actual sales volume exceeds the break-even sales volume.
22.Cost-volume-profit analysis is often complex when applied to a company with different products.
23.Sales of products with high contribution margins often are described as quantity sales.
24.The high-low method is the only method to be used when determining semivariable costs.
25.In cost-volume-profit analysis, the number of units sold is assumed to be equal to the number of units produced.