Accounting Exam 1 with answers graded A+ 2023

A change in revenues between two alternatives is known as ______ revenue or incremental revenue - differential a company has reached its break-even point when the CM ________ fixed expenses - equals a cost that contains both variable and fixed cost elements are __________ costs - mixed a measure of how sensitive net operating income is to a given percentage change in sales dollars - operating leverage a method that uses all the available data points to divide a mixed costs into its fixed and variable costs is called: - least square regression after reaching the break even point, a company's net operating income will increase by the ___________ ___________ per unit for each additional unit sold - contribution margin any item for which cost data is desired is called: - cost object Benefits that are given up when selecting one alternative over another - opportunity costs COGS for a merchandising company, direct material's, and commissions are all examples of _______ costs - variable contribution margin is first used to cover ___________ expesnes. once the break even point has been reached, CM becomes _______________ - fixed; profit contribution margin is: - sales revenue minus vaiable costs cost behavior is considered linear whenever: - a straight line approximates the relationship between cost and activity Cost objectives include: - anything for which cost data is desired customers organizational subunits costs incurred to identify defective products before they are shipped to customers are called ______ or ______ costs - appraisal or inspection costs that are shared by multiple cost objects in a company are known as ________ costs - common costs that result from identifying defects before products are shipped to customers and include the costs of scrap and rework are ________ costs - internal failure CVP analysis is based on some _______________ that may be violated in practice, but the tool is generally still useful - assumptions CVP is an acronym for - cost volume profit differential costs are also known as ________ costs - incremental differential costs, opportunity costs, and sunk costs are all cost classifications used in: - decision making direct labor and overhead cost incurred to change raw materials into finished products are known as _________ costs - conversion estimating the fixed and variable components of a mixed cost using the __________________ approach involves a detailed analysis of what cost behavior should be - engineering Fixed costs that usually arise from annual spending decisions by management are ________ fixed costs - discretionary high low or least squares regression analysis should only be done if a _______