Accounting fill in the blank

A ___________ cost decreases in total as activity decreases all the way to zero dollars at zero activity.

variable

A cost that increases in total as activity increases but stays constant on a per-unit basis is a ____________ cost.

Variable

When looking at a scatterplot, an observation that lies very far away from all the other observations is called an _________.

outlier

A cost that does not change at any level of activity within the relevant range is a __________ cost.

fixed

A ___________ cost decreases in total as activity decreases but not all the way to zero dollars.

mixed

In a cost function of the form Y = a + (b * X), where Y is total cost and X is a measure of activity, the "a" parameter represents the __________ cost component of the cost function.

fixed

A cost that increases only after a large increase in activity, rather than with each increase in activity, is called a ________ cost.

step

In the high-low method, the two data points used are the high and low levels of __________ from the dataset.

activity

The difference between Net Income using the Absorption Costing format and the Variable Costing format is driven by the change in __________.

inventory

In a regression analysis, all else equal, we prefer an independent variable that gives a ____________ R-squared value.

higher

Frequent Company has variable production costs of $10 per unit and variable administrative costs of $20 per unit. It sells its product for $50 per unit and incurs total fixed costs of $100,000.

20

The difference between Net Income using the Absorption Costing format and the Variable Costing format is equal to the change in the level of inventory multiplied by the __________ per unit.

Fixed material overhead (FMOH)

When production is greater than sales, ACNI is _________ than VCNI.

higher

When production is less than sales, ACNI is _________ than VCNI.

less

Revenues minus (All Variable Cost) is called.

Contribution Margin (CM)

An activity that occurs each time a unit of a product is produced is called a ____-level activity.

unit

[Revenues - Variable Costs] = ____________

Contribution Margin (CM)

The breakeven point, in units, is __________ divided by [Contribution Margin per Unit].

Total Fixed Costs

Contribution Margin divided by Sales Revenue is the ________________.

contribution margin ratio (CMR)

At the breakeven point, contribution margin is equal to

total fixed costs.

For a particular large production facility, quality control personnel, who are salaried employees, are most likely to exhibit __________ cost behavior.

step

Contribution Margin / Net Income = _____________.

Operating leverage (OL)

Margin of Safety is the amount of Revenues above the ____________.

BEP

The Cost-Volume-Profit model assumes no change in _______________.

inventory

Operating Leverage = _________ divided by Net Income.

CM

If sales volume declines, does the breakeven point decrease, increase, or stay the same?

stay the same

If sales volume declines, does the margin of safety decrease, increase, or stay the same?

decrease

A cash flow that will occur in the future and that is different depending on the choice we make is a ___________ cash flow.

relevant

To make a decision, first calculate the net cash flow effect and then consider that value in relation to _____________ costs and benefits.

qualitative

The net cash flow effect of a decision should be the present value of the _____________ cash flows.

After tax

The net cash flow effect of a special order decision is most likely the total ______________ from the order.

CM

In a sell-or-process further situation, the costs incurred prior to the split-off point are called __________ costs.

joint

To make a decision, first calculate the ___________ and then consider that value in relation to qualitative costs and benefits.

Net cash flow

A make-or-buy decision is also called an ___________ decision.

outsourcing

An activity that occurs each time a particular product is produced, regardless of how much of the product is produced, is called a ____-level activity.

batch

The general balance equation is 

Beginning Balance + Additions = Ending Balance + ______________.

Transfers out

__________________ decisions are concerned with selecting long-term assets.

Capital budgeting

The process of making capital investment decisions often is referred to as _______________ .

capital budgeting.

When a project's future cash flows are the same each year, the payback period is the _____________ divided by the annual cash flow amount.

initial investment

The payback period method ____________ the time value of money.

ignores

The average annual income divided by the initial investment is the _________________.

ARR

The accounting (simple) rate of return method ____________ the time value of money.

ignores

A capital investment decision involves a large cash ___________ in Year 0.

outflow

The internal rate of return is the discount rate that makes net present value equal to __________

0

A positive Net Present Value indicates that the return on the investment is greater than the _____________.

discount rate

A follow-up analysis of a capital project once it is implemented is called a _______________.

post-audit

The accounting (simple) rate of return is the average annual income divided by the _________________.

initial investment

The ________________ is the discount rate that makes net present value equal to zero.

IRR