Shown Below Are Terms or Phrases Preceded by Letters a Through

question 104

Short Answer

Shown below are terms or phrases preceded by letters a through j followed by a list of definitions. Match the terms or phrases 1 through 10 with the correct definitions by placing the letter of the term or phrase in the answer space provided at the beginning of each definition.
(a) Mixed cost
(b) Fixed cost
(c) Contribution margin per unit
(d) Curvilinear cost
(e) Variable cost
(f) Step-wise cost
(g) Relevant range of operations
(h) Estimated line of cost behavior
(i) Least-squares regression
(j) Cost-volume-profit analysis
________ (1) The amount that the sale of one unit contributes toward covering fixed costs and generating profit.
________ (2) A cost that changes in total in proportion to changes in volume of activity.
________ (3) A cost that includes both fixed and variable cost components.
________ (4) A cost that changes as volume changes, but at a nonconstant rate.
________ (5) A line drawn on a graph to fit the relation between cost and unit volume.
________ (6) A statistical method for identifying cost behavior that is more precise than the high-low method and a scatter diagram.
________ (7) A company's normal operating range of production volume; excludes extremely high and low operating levels that are unlikely to recur.
________ (8) A cost that remains constant over limited ranges of volumes of activity but shifts to another level when volume changes significantly.
________ (9) A business planning tool that helps managers predict how changes in costs and sales levels affect profit.
________ (10) A cost that remains unchanged in total amount despite variations in the volume of activity within a relevant range.

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Definitions:

Business Assets

Resources owned by a business that have economic value and can contribute to the company's future income, including both tangible and intangible items.

Payable In Installments

An agreement or obligation that allows payment to be made in parts or increments over a specified period, instead of a lump sum.

Corporate Stocks

Shares representing ownership in a corporation, providing shareholders with a claim on part of the company's assets and profits.

Article 2

Typically refers to a portion of the Uniform Commercial Code that governs the sale of goods in the United States.