Definitions
Name the "Cost"
Formulas
100
A cost that varies, in total, in proportion to changes in the level of activity
What is a Variable Cost
100
Costs that remain constant in total within the relevant range
What are Fixed Costs
100
The following depicts which income statement approach
The Contribution Approach
200
The amount remaining from sales and revenue after all variable expenses have been deducted
Sales and Revenue - Variable Expenses =
The Contribution Margin
200
Costs that contain both variable and fixed cost elements
What are Mixed Costs
200
The independent variable represents which variable in the following formula:
What is the X variable
300
A measure of whatever causes the variable cost to be incurred
What is the Activity Base
300
Fixed costs that are difficult to change in the short term and relate to the investment of facilities, equipment, and the basic elements of operating any business
What are Committed Fixed Costs
300
The following would result in what portion of the mixed cost:
The Fixed portion of the mixed cost
400
A method of separating a mixed cost into its fixed and variable elements by analyzing the change in the cost between the high and low levels of activity
What is the High-Low Method
400
Costs that result from annual decisions by management to spend in certain areas, such as advertising, research, and management development programs
What are Discretionary Fixed Costs
Aka. Managed Fixed Costs
400
The following would result in what cost per unit of activity
What is the Variable Cost per unit of activity
500
An income statement format where costs are separated into variable and fixed categories
What is the Contribution Approach
500
Costs that show a curved relationship between cost and activity rather than a straight-line relationship
What are Curvilinear Costs
500
The following is an example of which type of graph
What is a Scatter Plot Graph