ACCT 526 Final Questions & Answers 100% Correct!!

cost behavior - ANSWERSthe general term for describing whether and how a cost changes when the level of output changes cost driver - ANSWERSis a casual factor that measures the output of the activity that leads (or causes) costs to change relevant range - ANSWERSis the range of output over which the assumed cost relationship is valid for the normal operations of a firm fixed costs - ANSWERSare costs that in total are constant within the relevant range as the next level of output increases or decreases discretionary fixed costs - ANSWERSare fixed costs that can be changed or avoided relatively easily in the shirt run at the management discretion committed fixed costs - ANSWERSfixed costs that cannot be easily changed variable costs - ANSWERScosts that in total vary in direct proportion to changes in output within the relevant range discretionary variable cost - ANSWERSvariable costs that can be changed or avoided relatively easily in the short run at management discretion semi-variable cost - ANSWERSa cost that is variable in nature but whose rate of change is not constant mixed costs - ANSWERScosts that have both a fixed and a variable component step costs - ANSWERSdisplay a constant level of total cost for a range of output and then jump to a higher level (or step) of total cost at some point, where they remain for a similar range of output dependent variable - ANSWERSa variable whose value depends on the value of another variable independent variable - ANSWERSexplains changes in the dependent variable and, as such, its value does not depend on the value of another variable intercept - ANSWERScorresponds to fixed cost slope - ANSWERS_____ of the cost line corresponds to the variable rate high-low method - ANSWERSa method of separating mixed costs into fixed and variable components by using just the high and low data points scattergraph method - ANSWERSis a way to see the cost relationship by plotting the data points on a graph method of least squares (regression) - ANSWERSis a statistical way to find the best-fitting line through a set of data points absorption (full) costing -