Technical Communication Managerial Economics & Financial Accounting Set 2

PV ratio ✘ Break Even point ✘ Contribution ✘ Shutdown point ✔

Variable cost ✘ Fixed cost ✘ Variable Overhead ✘ Direct expenses ✔

Fixed cost ✘ Cost or market price whichever is less ✘ Market price ✘ Variable cost ✔

Profit ✘ Loss ✘ Contribution ✘ Sales ✔

Increases ✘ Decreases ✘ Remain unchange ✘ Any of the above. ✔

Prime cost ✘ Prime cost + variable overhead ✘ Cost of production ✘ Cost of sales ✔

Increases PV ratio ✘ Decreases PV ratio ✘ Increases Profit ✘ Increases contribution ✔

Profit ✘ Contribution ✘ BEP ✘ Margin of Safety ✔

BEP ✘ Sales ✘ Fixed cost ✘ Variable cost ✔

Net profit ✘ Contribution ✘ BEP ✘ Margin of Safety ✔