Match the CVP measure to its formula
Exercise and reference answers
- Matching pairs
- Left
- Contribution
- Right
- Selling price less variable cost
- Left
- P/V ratio
- Right
- Contribution divided by sales, as a percent
- Left
- Break-even point
- Right
- Fixed cost over contribution per unit
- Left
- Margin of safety
- Right
- Projected sales less break-even sales
- Instructions
- Tap a measure on the left, then the formula that defines it.
Explanation
_Source: ICAI CA Inter Cost and Management Accounting, Ch14, 14.7.2 and 14.7.3_