Accounting Case

Jeopardy

• Some measure of activity that causes costs to occur: cost driver

• Process of using ABC info to improve operations: Activity Based Management

• % indicates how much of every Revenue dollar goes toward recovering fixed costs and earning a profit: Contribution Margin Ratio

• three most basic types of cost behavior: fixed, variable, mixed

• this cost remains the same per unit at every level of activity: variable cost

• in CVP, solving for Q requires the following equation: Q=OI/CM

• three types of manufacturing product costs: DM, DL, and OH

• two most basic types of cost accounting systems: job order and process costing systems

• on a per unit basis, this cost produces a decreasing line on a cost behavior graph: fixed cost

• this type of cost cannot be traced to a cost object in an economically feasible manner: indirect costs

• proportion of different products or services sold by an organization: sales/product mix

• these activities increase the worth of an organization’s goods or services to customers: value added activities

• expenditure for a period-specific cost or fixed asset, which can be eliminated or reduced without having an immediate impact on the reported profitability of a business: discretionary fixed cost (vs. committed costs)

• type of cost system that involved cost assigned to each job: job order cost systems

• grouping of individual cost items: cost pool

• level of activity at which revenues cover all fixed and variable costs: breakeven point

• type of cost system used when large quantities of products are produced: process costing

• tasks or functions undertaken to support the production and distribution of a product or product line: Product