Question: Please help with VOCAB Decrease as volume decreases, but not in direct proportion to changes in volume Costs that the company is locked into due

Please help with VOCAB

Decrease as volume decreases, but not in direct proportion to changes in volume

Costs that the company is locked into due to previous management decisions

Treats only variable costs as product costs

Result from annual management decisions

Change in direct proportion to changes in volume

Total mixed cost - (variable cost per unit * number of units)

Gross profit operating expenses

Band of volume where total fixed costs and variable cost per unit remain the same

Fits a mixed cost line through the highest and lowest data points

Statistical procedure for determining the line and associated cost equation that considers all data points

Increases as volume increases

Helps managers visualize the relationship between cost and volume of activity

Contribution margin total fixed expenses

Sales revenue variable costs

Sales revenue cost of goods sold

Decreases as volume increases

Performed by using judgment to classify costs as variable, fixed or mixed

Required by GAAP

1.

Total Variable costs

2.

Total Fixed costs

3.

Mixed costs

4.

Committed fixed costs

5.

Discretionary fixed costs

6.

Variable cost per unit

7.

Fixed cost per unit

8.

Relevant range

9.

Account analysis

10.

Scatterplot

11.

High-low method

12.

Regression analysis

13.

Absorption costing

14.

Variable costing

15.

Contribution margin

16.

Gross profit

17.

Operating income on an absorption costing income statement

18.

Operating income on a contribution margin statement

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