Matching
Match the following definitions with the appropriate terms
Premises:
The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.
A cost that changes in proportion to changes in volume of activity.
A cost that includes both fixed and variable costs.
A cost that changes with volume but not at a constant rate.
A line drawn on a graph to fit the past relation between cost and sales.
A statistical method for deriving an estimated line of cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.
A cost that remains constant over limited ranges of volumes of activity but changes by a lump sum when volume changes occur outside these limited ranges.
Useful in business planning; includes predicting the volume of activity, the costs incurred, sales earned, and profits received.
A cost that remains unchanged in total amount even when the volume of activity varies
Responses:
Contribution margin per unit
Fixed cost
Mixed cost
Curvilinear cost
Variable cost
Step-wise cost
Relevant range of operations
Estimated line of cost behavior
Least-squares regression
Cost-volume-profit analysis
Correct Answer:
Premises:
Responses:
The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.
A cost that changes in proportion to changes in volume of activity.
A cost that includes both fixed and variable costs.
A cost that changes with volume but not at a constant rate.
A line drawn on a graph to fit the past relation between cost and sales.
A statistical method for deriving an estimated line of cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.
A cost that remains constant over limited ranges of volumes of activity but changes by a lump sum when volume changes occur outside these limited ranges.
Useful in business planning; includes predicting the volume of activity, the costs incurred, sales earned, and profits received.
A cost that remains unchanged in total amount even when the volume of activity varies
Premises:
The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.
A cost that changes in proportion to changes in volume of activity.
A cost that includes both fixed and variable costs.
A cost that changes with volume but not at a constant rate.
A line drawn on a graph to fit the past relation between cost and sales.
A statistical method for deriving an estimated line of cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.
A cost that remains constant over limited ranges of volumes of activity but changes by a lump sum when volume changes occur outside these limited ranges.
Useful in business planning; includes predicting the volume of activity, the costs incurred, sales earned, and profits received.
A cost that remains unchanged in total amount even when the volume of activity varies
Responses:
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