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1 
Account analysis

a metiod for analyzing cost behavior in which an account is classified as wither VC or FC based...


2 
activity base

a measure of whatever causes the incurrence of a VC.


3 
committed fixed costs

investments in facilities, equipment, and basic organizational structure that can't be significantly...


4 
contribution approach

an income statement format that organizes costs by their behavior. costs are separated...


5 
contribution margin

the amount remaining from sales revenues after all variable expenses have been deducted


6 
cost structure

the relative proportion of fixed, variable, and mixed costs in an organization


7 
dependent variable

a variable that responds to some casual factor; total cost is the dependent variable, as represented...


8 
discretionary fixed costs

those FC that arise from annual decisions by management to spend on certain FC items, such...


9 
engineering approach

a detailed analysis of cost behavior based on an industrial engineer's evaluation of the inputs...


10 
highlow method

a method of separating a mixed cost into its FC and VC elements by analyzing the change in...


11 
independent variable

a variable that acts as a casual factor; activity is the independent variable as represented...


12 
leastsquares regression method

a method of separating a mixed cost into its fixed and variable elements by fitting a regression...


13 
linear cost behavior

cost behavior is said to be linear whenever a straight line is a reasonable approximation for...


14 
mixed cost

a cost that contains both VC and FC elements


15 
Multiple regression

an analytical method required when variations in a dependent variabble are caused by more than...


16 
_{R}2 (R squared)

a measure of goodness of fit in leastsquares regression analysis. it is the percentage...


17 
relevant range

the range of activity within which assumptions about VC and FC behavior are reasonably valid


18 
stepvariable cost

the cost of a resource that is obtained in large chunks and that increases and decreases only...
