ACCT 202 Study Guide - Midterm Guide: Skimmed Milk, Opportunity Cost, Cottage Cheese

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brownleopard786

19 Apr 2016

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Cost behavior analysis: the study of how specific costs respond to changes in the level of business activity. Activity index: identifies the activity that causes changes in the behavior of. Variable costs: costs that vary in total directly and proportionately with changes in the activity level. Remains the same per unit at every level of activity. Fixed costs: remain the same in total regardless of changes in activity level. Fixed costs per unit vary inversely with activity: as volume increases, unit costs declines and vice versa= In most business situations, straight line relationships do not exist for variable costs. Relationships between variable costs and changes in activity level are. Relevant range: the range over which a company expects to operate during a curvilinear year. Mixed costs: costs that contain both a variable and a fixed cost element. Mixed costs therefore change in total but not proportionately with changes in the activity level.

Related Questions

Match the items in the two columns below by entering theappropriate code letter in the space provided.

The amount of revenue remaining after deducting variablecosts.
Costs that contain both a variable and a fixed element.
The percentage of sales dollars available to cover fixed costsand produce income.
Identifies the activity which causes changes in the behavior ofcosts.
The difference between actual or expected sales and sales atthe break-even point.
Costs that vary in total directly and proportionately withchanges in the activity level.
The level of activity at which total revenues equal totalcosts.
The range over which the company expects to operate during theyear.
Costs that remain the same in total regardless of changes inthe activity level.
A costing approach in which all manufacturing costs are chargedto the product.
A method that uses the total costs incurred at the high and lowlevels of activity.
A costing approach in which only variable manufacturing costsare product costs and fixed manufacturing costs are period costs(expenses).

1.	Activity index
2.	Variable costs
3.	Fixed costs
4.	High-low method
5.	Relevant range
6.	Mixed costs
7.	Break-even point
8.	Contribution margin
9.	Variable costing
10.	Absorption costing

orangetermite875

Match the items in the two columns below by entering theappropriate code letter in the space provided.

The amount of revenue remaining after deducting variablecosts.
Costs that contain both a variable and a fixed element.
The percentage of sales dollars available to cover fixed costsand produce income.
Identifies the activity which causes changes in the behavior ofcosts.
The difference between actual or expected sales and sales atthe break-even point.
Costs that vary in total directly and proportionately withchanges in the activity level.
The level of activity at which total revenues equal totalcosts.
The range over which the company expects to operate during theyear.
Costs that remain the same in total regardless of changes inthe activity level.
A costing approach in which all manufacturing costs are chargedto the product.
A method that uses the total costs incurred at the high and lowlevels of activity.
A costing approach in which only variable manufacturing costsare product costs and fixed manufacturing costs are period costs(expenses).

1.	Activity index
2.	Variable costs
3.	Fixed costs
4.	High-low method
5.	Relevant range
6.	Mixed costs
7.	Break-even point
8.	Contribution margin
9.	Margin of safety
10.	Contribution margin ratio
11.	Variable costing
12.	Absorption costing

lavenderjackal968

Which of the following statements describes variable costs?

Costs that vary on a per unit basis as the level of activitychanges

Costs that vary in total in direct proportion to changes in thelevel of activity

Costs that remain the same in total dollar amount as the levelof activity changes

Costs that vary on a per unit basis but remain the same in totalas the level of activity changes

A variant of fiscal-year budgeting whereby a twelve-monthprojection into the future is maintained at all times iscalled:

A. Flexible budgeting

B. Continuous budgeting

C. Zero-based budgeting

D. Master budgeting

erinelk174

ACCT 202 Study Guide - Midterm Guide: Skimmed Milk, Opportunity Cost, Cottage Cheese

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