| Term | Definition |
|---|
| CGS | CGM +beg inv. -end inv. |
| Fixed cost using variable rate | cost at high point - (variable rate x high output) |
| Contribution margin | Sales - variable expense |
| Targeted income | (price x unit) - (v.c. x unit) - fixed cost |
| Variable cost ratio | V.C. / revenue |
| Contribution margin ratio | CM / revenue |
| Break-even | F.C. / CM Ratio |
| Degree of operating leverage | CM / operating income |
| OH rate | OH / hours |
| Applied overhead | (DL x OH rate) / DL |
| Payback period | original investment / annual cash flow |
| ARR | Average imcome / original investment |
| Discount rate | 1/ (1+r)^t |
| Activity rate | cost / driver quantity |
| EOQ | ?2 x CO x (D/CC) |
Combine with other sets
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