Matching
Match the following definitions with the appropriate term
Premises:
The amount that the sale of one unit contributes toward covering fixed costs and generating profit.
A cost that changes in total in proportion to changes in volume of activity.
A cost that includes both fixed and variable cost components.
A cost that changes as volume changes, but at a nonconstant rate.
A line drawn on a graph to fit the relation between cost and unit volume.
A statistical method for identifying cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range of production volume; excludes extremely high and low operating levels that are unlikely to recur.
A cost that remains constant over limited ranges of volumes of activity but shifts to another level when volume changes significantly.
A business planning tool that helps managers predict how changes in costs and sales levels affect profit.
A cost that remains unchanged in total amount despite variations in the volume of activity within a relevant range.
Responses:
Mixed cost
Fixed cost
Contribution margin per unit
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 covering fixed costs and generating profit.
A cost that changes in total in proportion to changes in volume of activity.
A cost that includes both fixed and variable cost components.
A cost that changes as volume changes, but at a nonconstant rate.
A line drawn on a graph to fit the relation between cost and unit volume.
A statistical method for identifying cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range of production volume; excludes extremely high and low operating levels that are unlikely to recur.
A cost that remains constant over limited ranges of volumes of activity but shifts to another level when volume changes significantly.
A business planning tool that helps managers predict how changes in costs and sales levels affect profit.
A cost that remains unchanged in total amount despite variations in the volume of activity within a relevant range.
Premises:
The amount that the sale of one unit contributes toward covering fixed costs and generating profit.
A cost that changes in total in proportion to changes in volume of activity.
A cost that includes both fixed and variable cost components.
A cost that changes as volume changes, but at a nonconstant rate.
A line drawn on a graph to fit the relation between cost and unit volume.
A statistical method for identifying cost behavior that is more precise than the high-low method and a scatter diagram.
A company's normal operating range of production volume; excludes extremely high and low operating levels that are unlikely to recur.
A cost that remains constant over limited ranges of volumes of activity but shifts to another level when volume changes significantly.
A business planning tool that helps managers predict how changes in costs and sales levels affect profit.
A cost that remains unchanged in total amount despite variations in the volume of activity within a relevant range.
Responses:
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