Match each of the following terms to the appropriate definition. A type of cost
ID: 2438290 • Letter: M
Question
Match each of the following terms to the appropriate definition.
A type of cost that has two components; one that does not change in relation to the volume produced and one that does change in relation to the volume produced.
A type of cost that does not change in relation to volume produced.
A type of cost that changes in relation to volume produced.
Describes a company's cost structure and the effect of fixed costs on operating income as volume changes.
A fairly accurate calculation to determine the variable and fixed components of a cost.
The excess of sales over break-even revenue.
A method of examining different scenarios by only examining items that have changed.
A production level where certain costs remain the same.
The difference between sales per unit and variable costs per unit.
Answer 9
The answers for each one are one of these, Least squared regression method, Fixed Costs, Incremental Analysis, Relevant Range, Mixed Costs, Operating Leverage, Margin of Safety, Variable costs, and Contribution Margin per Unit
A type of cost that has two components; one that does not change in relation to the volume produced and one that does change in relation to the volume produced.
Answer 1Explanation / Answer
Answer 1 - A type of cost that has two components; one that does not change in relation to the volume produced and one that does change in relation to the volume produced is called - MIXED COSTS
Answer 2 - A type of cost that does not change in relation to the volume produced is called - FIXED COSTS
Answer 3 - A type of cost that changes in relation to the volume produced is called - VARIABLE COSTS
Answer 4 - OPERATING LEVERAGE describes a company's cost structure and the effect of fixed costs on operating income as volume changes.
Answer 5 - LEAST SQUARED REGRESSION METHOD is a fairly accurate calculation to determine the variable and fixed components of a cost.
Answer 6 - The excess of sales over break even revenue is called - MARGIN OF SAFETY
Answer 7 - A method of examining different scenarios by only examining items that have changed is called - INCREMENTAL ANALYSIS
Answer 8 - A production level where certain costs remain the same is called - RELEVANT RANGE
Answer 9 - The difference between sales per unit and variable costs per unit is called - CONTRIBUTION MARGIN PER UNIT.