
If you have difficulty answering the following questions, learn more about this topic by reading our Explanation of Break-even Point.
The following questions pertain to the Statements of Financial Standards (SFAS), which are issued by the Financial Accounting StandardsBoard (FASB). You can read the the pronouncements on the FASB's website www.FASB.org/st.
| Word Clue | Answer |
Unscrambled Answer | |
| 1. | The breakeven point occurs where total ___________ are equal to total costs. | UNSEVERE | REVENUES |
| 2. | Revenues minus variable costs equals the _________________ margin. | OBITUNRNITOC | CONTRIBUTION |
| 3. | Costs and expenses which do not change in __________ when there is a change in volume are considered to be fixed. | LOATT | TOTAL |
| 4. | Costs and expenses that change proportionately with the change in volume are said to be ______________. | ARELIABV | VARIABLE |
| 5. | The breakeven point in _________ uses the contribution margin per unit. | SUITN | UNITS |
| 6. | When calculating a product's breakeven point in dollars, the denominator is the contribution margin __________. | TORIA | RATIO |
| 7. | When calculating a product's breakeven point in dollars or in units, the numerator is __________ costs. | XDIEF | FIXED |
| 8. | A cost that is partly fixed and partly variable is referred to as a ____________ cost. | DIMEX | MIXED |
| 9. | The "V" in CVP. | LEMOVU | VOLUME |
| 10. | The excess of sales over the breakeven point is the margin of ___________. | YEFAST | SAFETY |