• Shuffle
Toggle On
Toggle Off
• Alphabetize
Toggle On
Toggle Off
• Front First
Toggle On
Toggle Off
• Both Sides
Toggle On
Toggle Off
Toggle On
Toggle Off
Front

### How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

Play button

Play button

Progress

1/17

Click to flip

### 17 Cards in this Set

• Front
• Back
 cost prediction The application of cost measures to expected future activity levels to forecast future costs account analysis Selecting a plausible cost driver and classifying each account as a variable cost or as a fixed cost visual-fit method A method in which the cost analyst visually fits a straight line through a plot of all the available data engineering analysis The systematic review of materials, supplies, labor, support services, and facilities needed for products and services; measuring cost behavior according to what costs should be, not by what costs have been. high-low method A simple method for measuring a linear-cost function from past cost data, focusing on the highest-activity and lowest-activity points and fitting a line through these two points least-squares regression (regression analysis) Measuring a cost function objectively by using statistics to fit a cost function to all the data coefficient of determination (R²) A measurement of how much of the fluctuation of a cost is explained by changes in the cost driver Measurement of cost behavior Understanding and quantifying how activities of an organization affect levels of costs linear-cost behavior Activity that can be graphed with a straight line because costs are assumed to be either fixed or variable step costs Costs that change abruptly at intervals of activity because the resources and their costs come in indivisible chunks mixed costs Costs that contain elements of both fixed- and variable-cost behavior capacity costs The fixed costs of being able to achieve a desired level of production or to provide a desired level of service while maintaining product or service attributes, such as quality committed fixed costs Costs arising from the possession of facilities, equipment, and a basic organization: large, indivisible chunks of cost that the organization is obligated to incur or usually would not consider avoiding. discretionary fixed costs Costs determined by management as part of the periodic planning process in order to meet the organizations goals. They have no obvious relationship with levels of capacity or output activity. cost measurement Estimating or predicting costs as a function of appropriate cost drivers cost function An algebraic equation used by managers to describe the relationship between a cost and its cost driver (s). activity analysis The process of identifying appropriate cost drivers and their effects on the costs of making a product or providing a service