S6-19 Identify cost behavior terms (Learning Objectives 1, 2, 3, 4, & 5)

Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all.

R-square Average cost per unit Variable cost(s)
Step cost(s)
Committed fixed costs Curvilinear cost(s)
Total cost(s)
Account analysis Regression analysis Fixed cost(s)
Mixed cost(s)
High-low method

a. The total ________ line increases as the volume of activity increases, but the line does not begin at the origin.

b. The slope of the total ________ line is the variable cost per unit of activity.

c. The ________ uses two data points to arrive at a cost equation to describe a mixed cost.

d. ________ is a method for determining cost behavior that is based on a manager’s judgment.

e. ________ are a type of cost behavior that is fixed over a small range of activity and then jumps to a different fixed level with moderate changes in volume.

f. The ________ per unit is inversely related to the volume of activity.
g. An s-shaped line would represent a ________.
h. The ________ value is referred to as the “goodness-of-fit” statistic.
i. As the activity level rises and falls, ________ remain constant in total.
j. ________ are fixed costs that management has little or no control over in the short run.
k. ________ is equal to the sum of ________ plus ________.
l. ________ is the cost to produce a single unit of production as calculated by dividing the total cost by the total number of units produced.
m. The cost equation resulting from using ________ is described as the “line of best fit.”