Term of McGraw-Hill
STEP FIXED COSTS
Total cost doesn’t change for a wide range of activity, and then jumps to a new higher cost for the next higher range of activity.
STEP VARIABLE COSTS
Total cost remains constant within a narrow range of activity.
TOTAL FIXED COSTS
Total fixed cost remains the same even when the activity level changes.
TOTAL VARIABLE COSTS
Total variable cost changes as activity level changes.
CURVILINEAR COST
A straight-Line (constant unit variable cost) closely approximates a curvilinear line within the relevant range.
SEMI VARIABLE COST
A semivariable cost is partly fixed and partly variable.
ACCOUNT CLASSIFICATION METHOD
Cost estimates are based on a review of each account making up the total cost being analyzed.
VISUAL FIT METHOD
A scatter diagram of past cost behavior may be helpful in analyzing mixed costs.
HIGH LOW METHOD
A simple way to draw an estimated line of cost behaviour by connecting the highest and lowest costs on a scatter diagram with a straight line.
LEAST SQUARES REGRESSION METHOD
statistical procedure used to determine the relationship between variables such as activity and cost. The objective of the regression method is the general cost equation: Y = a + bX in cost terms TC = F + VX
ENGINEERING METHOD OF COST ESTIMATION
A cost-estimation method in which a detailed study is made of the process that results in cost incurrence
Labels: Manajerial Akuntansi
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Thursday, March 19, 2009.
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