Home
Subjects
Explanations
Create
Search
Log in
Sign up
Upgrade to remove ads
Only $2.99/month
Social Science
Economics
Finance
Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimation
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
Terms in this set (30)
account classification method (account analysis)
a cost estimation method involving a careful examination of the ledger accounts for the purpose of classifying each cost as variable, fixed, or semivariable
big data
a massive volume of both structured and unstructured data that is so large it is difficult to process using traditional methods
coefficient of determination
a statistical measure of goodness of fit; a measure of how closely a regression line fits the data on which it is based
committed cost
a cost that results from an organization's ownership or use of facilities and its basic organization structure
cost behavior
relationship between cost and activity
cost estimation
process of determining how a particular cost behaves
cost prediction
forecast of costs at a particular level of activity
curvilinear cost
cost with a curved line for its graph
dependent variable
a variable whose value depends on other variables, called independent variables
discretionary cost
a cost that results from a discretionary management decision to spend a particular amount of money
engineered cost
cost that results from a definitive physical relationship with the activity measure
engineering method
cost estimation method in which a detailed study is made of the process that results in cost incurrence
experience curve
a graph that shows how a broad set of costs decline as cumulative production output increases
fixed cost
cost that does not change in total as activity changes
goodness of fit
closeness with which a regression line fits the data upon which it is based
high low method
a cost estimation in which a cost line is fit using exactly two data points- the high and low activity levels
independent variable
variable upon which an estimate is based in least squares regression analysis
learning curve
a graphical expression of the decline in the average labor time required per unit as cumulative output increases
least squares regression method
cost estimation method in which the cost line is fit to the data by statistical analysis; the method minimizes the sum of the squared deviations between the cost line and the data points
multiple regression
a statistical method in which a linear (straight line) relationship is estimated between a dependent variable and two or more independent variables
outlier
a data point that falls far away from the other points in a scatter diagram and is not representative of the data
regression line
A line fit to a set of data points using least-squares regression
relevant range
range of activity within which management expects the organization to operate
scatter diagram
a set of plotted cost observations at various activity levels
semivariable (mixed) cost
cost with both a fixed and a variable component
simple regression
a regression analysis based on a single independent variable
step fixed cost
cost that remains fixed over wide ranges of activity, but jumps to a different amount for activity levels outside that range
step variable cost
a cost that is nearly variable, but increases in small steps instead of continuously
variable cost
cost that changes in total in direct proportion to a change in an organization's activity
visual fit method
a method of cost estimation in which a cost line is drawn through a scatter diagram according to the visual perception of the analyst
Sets found in the same folder
Chapter 1: The Changing Role of Managerial Account…
34 terms
Chapter 2: Basic Cost Management Concepts
40 terms
Chapter 7: Cost Volume-Profit Analysis
18 terms
Chapter 7 Decision Making: Relevant Costs and Bene…
23 terms
Sets with similar terms
Managerial Accounting: Chp 6 Vocab
32 terms
Chapter 6 Cost Behavior
30 terms
Cost Accounting: A Managerial Emphasis Chapter 10
39 terms
Cost Accounting Ch 10
73 terms
Other sets by this creator
Marketing Exam 2: Chapter 9
57 terms
Marketing Exam 2: Chapter 8
60 terms
Marketing Exam 2: Chapter 7
61 terms
Marketing Exam 1
137 terms
Other Quizlet sets
EMT CLASS
37 terms
models of speech perception (new)
40 terms
Chapter 12 exam 2
179 terms
Combo with "English 10 Unit 9 Vocabulary Defintion…
60 terms