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1. It is often assumed that a cost function is ____________ within the relevant range of a single activity. 2. The ________________ in an estimated

1. It is often assumed that a cost function is ____________ within the relevant range of a single activity. 2. The ________________ in an estimated cost function is the component of total cost that does not vary with changes in the level of an activity. 3. The ___________________ in an estimated cost function is the amount by which total cost changes when a one-unit change occurs in the level of an activity. 4. The most important issue in estimating a cost function is to determine whether or not a_____________________ relationship exists between an activity and the cost in question. 5. The __________________________ method estimates cost functions by analyzing the relationship between inputs and outputs in physical terms. 6. A statistical method that measures the average amount of change in the dependent variable associated with a unit change in one or more independent variables is ______________________ __________________. 7. A ___________________ remains the same over various ranges of the level of an activity, but increases by discrete amounts as the level of an activity increases from one range to the next. 8. (Appendix) A statistical measure of goodness of fit is the __________________________, which is the percentage of variation in the dependent variable (the cost) explained by the independent variable (the cost driver). 9. (Appendix) The vertical distance in a graph between actual cost and estimated cost for each observation of the cost driver is called a ______________________.

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