Ch 4 · Marginal Costing & CVP Analysis

📘 Core concepts

1. 1Marginal cost = variable cost; charge fixed cost to period.
2. 2Contribution = Sales − Variable Cost. Profit = Contribution − Fixed Cost.
3. 3Break-even point: where total revenue = total cost.
4. 4Margin of safety: actual/budgeted sales above BEP.
5. 5Decision-making: make-or-buy, accept/reject special order, key factor analysis.