Listed below are nine technical accounting terms:

Cost-volume-profit analysis,

Contribution margin ratio,

variable cost,

beak-even point,

activity base,

cost driver,

margin of safety,

high-low method

contribution margin

Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer None if the statement does not correctly describe any of the terms.

(a) The amount by which sales revenue exceeds total variable cost expressed as a percentage of sales.

(b) The amount by which sales volume exceeds the breakeven point.

(c) The study of financial statements by a potential investor or creditor as a means of evaluating the profitability and solvency of a business.

(d) A type of activity that has a causal effect in the occurrence of a particular cost.

(e) The level of sales at which revenue equals operating expenses.

(f) A cost that responds to changes in sales volume by less than a proportionate amount.

(g) A mathematical technique used to determine the fixed and variable elements of a mixed or semi-variable cost.