Part A) Cost behavior is the

-amount of sales necessary to achieve a specific profit

-difference between sales revenue and fixed costs

-way in which costs change when the activity level changes

-same as absorption costing

Part B) Total sales - total variable costs is equal to

-fixed costs

-net income

-margin of safety

-total contribution margin

Part C) A company's operating leverage refers to

-decisions about the use of debt vs equity

-how a company budgets for future operations

-the difference between actual or budgeted sales and the break even point

-the extent to which fixed costs are used to operate a business