Accounting 312 CH 6

In merchandising firms, most labor costs are (select all that apply): A) Variable B) Step-fixed C) Fixed D) Semivariable

B C

A cost that results from a company's ownership or use of facilities and its basic organization structure is a(n) ________ cost: A) Committed B) Discretionary C) Engineered

A

If the steps are small, a step-variable cost may be calculated using a _______ without significant loss in accuracy: A) Variable Cost function B) Fixed cost function C) Semivariable cost function

A

When a cost changes both in total and per unit, with a change in activity, it is a: A) Semi-variable cost B) Variable cost C) Step-fixed cost D) Fixed Cost

A

Relevant range is the (select all that apply): A) Level of activity within which management expects the company to operate B) The range of activity over which it is expected the variable cost per unit will change C) The range of activity over which it is expected cost behavior patters will remain constant D) The entire range of possible activity at which the company could operate

A C

A cost that changes in total in direct proportion to a change in activity level is a: A) Semivariable cost B) Variable cost C) Step-variable cost D) Fixed Cost E) Step-Fixed cost

B

When approximating a curvilinear cost, companies most frequently use the _________ function: A) Variable B) Fixed C) Semivariable

C

A cost that remains unchanged in total and changes per unit as activity level change is a: A) Semivariable cost B) Variable cost C) Step-fixed cost D) Fixed cost E) Step-Variable cost

D

The relationship between cost and activity is called _______ _________

cost behavior

During the budgeting process, cost behavior patterns are used to make a(n) _______ ________ for each of the firm's cost items

cost prediction

A ______ cost pattern shows changes in marginal cost as activity changes

curvilinear

Cost behavioral patterns are also called cost _________

functions

Another term for a semivariable cost is a ________ cost

mixed

A cost that remains unchanged in total over a wide range of activity, but jumps in total when the range limit is reached is a _________ ______________ cost

step fixed

A cost that is nearly variable, but increases in small steps rather than continuously is a _______ _________ cost

step variable