1. Explain how short-term operating decisions differ from other decisions made by managers.
2. How is activity defined in cost-volume-profit analysis?
3. Describe the five basic assumptions of cost-volume-profit analysis.
1. Explain the breakeven point in units. How is it related to the breakeven point in dollars?
2. Explain each of the following: contribution margin per unit and contribution margin ratio.
3. Explain how to calculate before-tax profit by using after-tax profit.
1. How can cost-volume-profit analysis determine the number of units that must be sold to achieve a certain profit after taxes?
2. Explain the difference between product and no product costs.
3. Explain the three types of product costs and give an example of each.