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Intro to Managerial Accounting

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Question
Answer
Cost Behavior   how the activities of an organization affect its cost  
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Cost Driver   any output measure that causes cost (that is, Causes the use of costly resources)  
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Variable Cost   a cost that changes in direct perportion to changes in the cost-driver level  
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Fixed Cost   a cost that is not immediately affected by changes in the cost-driver level  
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Relevant Range   the limit of cost-driver level within which a specific relationship between costs and the cost driver is valid  
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Cost-Volume-Profit(CVP) Analysis   the study of the effects of output volume on revenue(sales), expenses (costs), and net income (net profit)  
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