ACC210 Ch3 Set 2

Question 1

Step-ficed cost: shop managers’ salaries - graph?

Answer 1

pg91

Question 2

Semivariable (mixed cost)

Answer 2

a cost that consists of both fixed and variable components

Question 3

Semivariable cost: cost of operating delivery trucks - graph?

Answer 3

pg91

Question 4

Curvilinear cost

Answer 4

a cost that exhibits a cost behaviour that can be described by a curved line

Question 5

Marginal cost

Answer 5

the cost of producing one additional unit of production

Question 6

Curvilinear cost: electricity cost - graph?

Answer 6

pg92

Question 7

Relevant range

Answer 7

the range of activity over which a particular cost behaviour pattern is assumed valid

Question 8

Engineered cost

Answer 8

a cost that bears a defined physical relationship to the level of output

Question 9

Committed cost

Answer 9

a cost resulting from an organisation’s basic structure and facilities, and which is very difficult to change in the short term

Question 10

Discretionary cost

Answer 10

a cost resulting from a management decision to spend a particular amount of money for some purpose, and where the decision can be changed easily