Match the following terms with their definitions. 1. Focuses on profits rather t

Question

Match the following terms with their definitions.

1. Focuses on profits rather than on revenues or costs.

2. Focuses on costs, sales, and operating profit or loss.

3. The relative distribution of sales among products sold by a company.

4. Contribution margin divided by income from operations.

5. Indicates the possible decrease in sales that may occur before operating loss results.

Answers:

A. Operating leverage

B. Margin of safety

C. Profit-volume chart

D. Sales mix

E. Cost-volume-profit chart

1. Focuses on profits rather than on revenues or costs.

2. Focuses on costs, sales, and operating profit or loss.

3. The relative distribution of sales among products sold by a company.

4. Contribution margin divided by income from operations.

5. Indicates the possible decrease in sales that may occur before operating loss results.

Answers:

A. Operating leverage

B. Margin of safety

C. Profit-volume chart

D. Sales mix

E. Cost-volume-profit chart

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Paticulars 1. Focuses on profits rather than on revenues or costs. C. Profit-volume chart 2. Focuses on costs, sales, and operating profit or loss. E. Cost-volume-profit chart 3. The relative distribution of sales among products sold by a company D. Sales mix 4. Contribution margin divided by income from operations. A. Operating leverage 5. Indicates the possible decrease in sales that may occur before operating loss results. B. Margin of safety

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