Managerial Accounting Test 2

What kind of costs increase in increments, not per unit produced?

The range of activity within which the assumptions made about cost behavior are reasonably valid is defined as what?

Investments in facilities, equipment, and basic organizational structures that can't be significantly reduced, even for short periods of time, without making fundamental changes is defined as what?

Those costs that arise from annual decisions by management to spend on certain cost items, such as advertising and research is defined as what?

Which of the fixed costs categories can be adjusted?

A cost that contains both variable and fixed cost elements is defined as what?

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated according to organizational functions is defined as what?

The amount remaining from sales revenues after variable expenses have been deducted is defined as what?

How should the cost behavior within the relevant range for fixed costs be treated?

What is the equation to express the relationship between a mixed cost and the level of activity?

A method of separating a mixed cost into its fixed and variable elements by fitting a regression line that minimizes the sum of the squared errors is defined as what?

"Goodness of fit";the percentage of the variation in the dependent variable that is explained by variation of the independent variable is defined as what?

How is the contribution margin ratio calculated?

How is the contribution margin ratio calculated on a per unit basis?

What is the equation used for target profit analysis?