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Shown Below Are Terms or Phrases Preceded by Letters a Through

Question 52

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

Fixed 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.

Mixed cost

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

Step-wise cost

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

Variable cost

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

Estimated line of cost behavior

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

Cost-volume-profit analysis

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

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

Contribution margin per unit

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

Relevant range of operations

A cost that includes both fixed and variable costs.

Curvilinear cost

Premises:

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

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 changes in proportion to changes in volume of activity.

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

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

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

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.

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 cost that includes both fixed and variable costs.

Responses:

Fixed cost

Mixed cost

Step-wise cost

Variable cost

Estimated line of cost behavior

Cost-volume-profit analysis

Least-squares regression

Contribution margin per unit

Relevant range of operations

Curvilinear cost

Correct Answer:

Premises:

Responses:

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

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 changes in proportion to changes in volume of activity.

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

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

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

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.

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 cost that includes both fixed and variable costs.