| A) | The relative proportion of fixed, variable, and mixed costs found in an organization.
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| B) | Cost behaviour where the relationship between cost and activity can be reasonably approximated by a straight line.
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| C) | An income statement format where costs are separated into variable and fixed categories.
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| D) | A cost (such as the cost of a maintenance worker) that is obtainable only in large amounts and that increases and decreases only in response to fairly wide changes in the activity level.
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| E) | Fixed costs that are difficult to change in the short term and that relate to the investment in facilities, equipment, and the basic elements of operating any business.
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| F) | A method for analyzing cost behaviour in which each account under consideration is classified as either variable or fixed based on the analyst's prior knowledge of how the cost in the account behaves.
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| G) | Costs that show a curved relationship between cost and activity rather than a straight-line relationship.
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| H) | Fixed costs arising from annual decisions by management to spend in certain areas, such as advertising and research.
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| I) | A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low levels of activity.
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| J) | A detailed analysis of cost behaviour based on an industrial engineer's evaluation of the physical inputs required to produce a unit of output and of the costs of those inputs.
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| K) | A method of separating a mixed cost into its fixed and variable elements by fitting a regression line that minimizes the sum of the squared errors.
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| L) | A qualitative assessment of whether the relationship between the independent and dependent variables in a cost estimation model makes sense from an economic perspective.
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| M) | A measure of whatever causes a variable cost to be incurred. For example, the total cost of direct materials in a bicycle manufacturing company will increase as the number of bicycles produced increases. Therefore, the number of bicycles produced is an activity base for explaining the total cost of direct materials.
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| N) | A variable that responds to some causal factor; total cost is the dependent variable, as represented by the letter Y in the equation Y = a + bX.
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| O) | A variable that acts as a causal factor; activity is the independent variable, as represented by the letter X in the equation Y = a + bX.
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| P) | The amount remaining from sales revenues after all variable expenses have been deducted.
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| Q) | An analytical method required in those situations where variations in a dependent variable are caused by more than one activity.
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| R) | A variable cost where the per unit amount increases or decreases as the activity level changes.
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