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    Exercise 20.1: Accounting Meaning

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    Listed below are nine technical accounting terms introduced in this chapter:
    Variable costs Relevant range Contribution margin
    Break-even point Fixed costs Semivariable costs
    Economies of scale Sales mix Unit contribution margin
    Each of the following statements may (or may not) describe one of these technical terms. For each
    statement, indicate the accounting term described, or answer "None" if the statement does not correctly
    describe any of the terms.
    a. The level of sales at which revenue exactly equals costs and expenses.

    b. Costs that remain unchanged despite changes in sales volume.

    c. The span over which output is likely to vary and assumptions about cost behavior generally
    remain valid.

    d. Sales revenue less variable costs and expenses.

    e. Unit sales price minus variable cost per unit.

    f. The reduction in unit cost achieved from a higher level of output.

    g. Costs that respond to changes in sales volume by less than a proportionate amount.

    h. Operating income less variable costs.

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    I have attached your response here. It is in Word Document Form.
    Listed below are nine technical accounting terms introduced in this chapter: Variable costs, Relevant Range Contribution, Margin Break-even Point, Fixed Costs, Semi variable costs, Economies of scale, Sales mix Unit, contribution margin. ...

    Solution Summary

    This solution associates accounting terms with their meaning. It is 181 words in total length and needs no reference. It helps the student understand the terms associated with accounting and can be used as a study guide.

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