CMO1 - 2
(______) cost remain constant in total with in the relevant range of activities
Fixed
the relevant range of activity is approximated by
a straight line
using the high low method, the fixed cost is calculated
after the variable cost is calculated or using either the high or low level of acticity
mixed costs contains
both fixed and variable cost
direct cost
costs that can be easily and conveniently traced to a specific product are
cost objectives
customers organizational subunits anything for which data is desired
3 factors of product cost
direct materials direct labor mfg.o head
the equation for a straight line can be used to
express the relationship between mixed costs and activity
direct materials, direct labor, and manufacturing over head are all
manufacturing cost
period cost
non mfg cost selling adm
a potential benefit that is forfieted or lost when one decision is chosen over another is know as a
opportunity cost
with in a (______) variable costs remain constant on a per unit basis
relevant range
with in the (_______) of activity cost assumptions are reasonably valid
relevant range
cost that have already been incurred and can not be changed by decions made in the current period or in future periods
sunken
marginal cost is
the cost incurred to produce one unit of a product
marginal revenue.
the revenue obtained from selling an additional unit of product
(____) cost vary in total in direct proportion in changes in activity level
variable
the term for sales revenue minus variable expenses is
contribution margin
generally include rent and supervisor salaries
fixed cost
remain constant within the relevant range of activity
fixed cost
with in the(__) of activity variable costs vary in total and remain constant per unit
relevant range
contribution margin is the excess of
sales revenues over variable cost
cost that are shared by multiple departments in a company are know as
common
free cash flow
company's ability to fund its capital expenditures and dividends from its net cash provided by operating activities
variable cost remain fixed in total with in the relevant range of activity
false
factory rent factory insurance administrative salaries
fixed cost
should not be expressed on a per unit basis in internal reports
fixed cost
contribution format.
income statement that categorizes cost by their behavior of variable or fixed
with in the relevant range of activity, fixed cost
remain constant in total
variable cost
remain constant per unit and very in total
fixed cost
should not be expressed on a per unit basis in internal reports generally include rent and supervisor salaries remain constant within the relevant range of activity
