Indicate which of the following terms corresponds to the descriptions below:
Description
a. Method used to allocate costs based on review of the general ledger account detail.
b. Total cost remains the same despite changes in volume, over a relevant range.
c. One data point that does not fit the pattern of other data points due to error, irregularity or
presence outside the relevant range.
d. Method used to approximate a cost equation so as to estimate the fixed and variable cost
components of a mixed cost.
e. Costs depend on both the costs that do not change and the costs that do change with a change
in activity.
f. Chosen activity driver that is most closely related to (drives) the mixed costs (e.g., units, miles,
feet, hours).
g. Costs per activity level; cost per unit remains constant as activity level increases.
h. Statistical technique that includes all data points to determine the relationships between
dependent and independent variables.
i. A plot of all data points collected to determine the relationships between the data points.
Term
Account analysis
Dependent variable
Fixed cost
High-low method
Independent variable
Outliers
Regression analysis
Scatter diagram
Variable cost
