Cornerstones of Managerial Accounting Study Set 1

Which of the following processes requires one to know how costs change as output changes?

Which factor causes or leads to a change in a cost or activity?

What is characteristic of a fixed cost within the relevant range?

Which of the following is an example of a fixed cost?

Which of the following is likely a fixed cost in a fast-food restaurant?

What is relevant range?

If output increases by 60% and is still within the relevant range,what will be the most likely result?

What does cost behaviour analysis focus on?

What is the range of activity within which a cost function is valid?

When the level of activity increases within the relevant range,what is the effect on the fixed cost per unit?

What is the relationship between per-unit fixed costs and output?

Which of the following is characteristic of discretionary fixed costs?

What is an example of a discretionary cost?

What is an example of a discretionary fixed cost?

What is characteristic of a committed fixed cost?

What is a discretionary fixed cost for a doctor's office?

What is a committed fixed cost for a coffee shop?

What is a variable cost in a factory?

What is characteristic of variable costs within the relevant range?

What is a variable cost for a medical lab?