Solved

Shown Below Are Terms or Phrases Preceded by Letters a Through

Question 180

Matching

Shown below are terms or phrases preceded by letters a through j followed by a list of definitions.Match the terms or phrases 1 through 10 with the correct definitions by placing the letter of the term or phrase in the answer space provided at the beginning of each definition.

Premises:

Responses:

A cost that changes in proportion to changes in volume of activity.

Estimated line of cost behavior

A line drawn on a graph to fit the past relation between cost and sales.

Relevant range of operations

A cost that changes with volume but not at a constant rate.

Mixed cost

A statistical method for deriving an estimated line of cost behavior that is more precise than the high-low method and a scatter diagram.

Cost-volume-profit analysis

A cost that includes both fixed and variable costs.

Fixed cost

A cost that remains unchanged in total amount even when the volume of activity varies.

Step-wise cost

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.

Least-squares regression

Useful in business planning; includes predicting the volume of activity, the costs incurred, sales earned, and profits received.

Curvilinear cost

A company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.

Variable cost

The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.

Contribution margin per unit

Premises:

A cost that changes in proportion to changes in volume of activity.

A line drawn on a graph to fit the past relation between cost and sales.

A cost that changes with volume but not at a constant rate.

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 cost that includes both fixed and variable costs.

A cost that remains unchanged in total amount even when the volume of activity varies.

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 company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.

The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.

Responses:

Estimated line of cost behavior

Relevant range of operations

Mixed cost

Cost-volume-profit analysis

Fixed cost

Step-wise cost

Least-squares regression

Curvilinear cost

Variable cost

Contribution margin per unit

Correct Answer:

Premises:

Responses:

A cost that changes in proportion to changes in volume of activity.

A line drawn on a graph to fit the past relation between cost and sales.

A cost that changes with volume but not at a constant rate.

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 cost that includes both fixed and variable costs.

A cost that remains unchanged in total amount even when the volume of activity varies.

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 company's normal operating range; excludes extremely high and low volumes that are not likely to be encountered.

The amount that the sale of one unit contributes toward recovering fixed costs and earning profit.