ACCT 2023 Chapter 1

Which of the following are most likely fixed costs?

Factory rent Factory insurance Administrative salaries

Within the relevant range of activity, Blank______ costs remain constant in total.

Fixed

Discretionary fixed costs include Blank______.

advertising management training programs

Differential cost is Blank______.

also known as incremental cost the difference in cost between two alternatives

Period costs Blank______.

are expensed in the period incurred include all costs that are not product costs

Fixed costs that cannot easily be changed and often lock a company into a multi-year decision are called

committed

Indirect labor costs include Blank______.

factory security guard wages assembly-line supervisor salary

In the equation Y = a + bX, a = total Blank______ cost.

fixed

Within the relevant range of activity Blank______.

fixed costs remain constant in total and vary per unit the assumption that cost behavior is strictly linear is reasonably valid

An activity base Blank______.

is sometimes called a cost driver

Fixed costs that can be cut for short periods of time with minimal damage to the long-run goals of the organization are called Blank______ fixed costs.

managed discretionary

A cost that contains both variable and fixed cost elements is a(n) Blank______ cost.

mixed

Variable costs Blank______.

remain constant per unit vary in total

Committed fixed costs include Blank______.

top management salaries real estate taxes

Common activity bases include Blank______.

units sold machine hours direct labor hours