Fill in Blank (answer can be used more than once)

Actual rate, Allocation base, CM, Conversion, Fixed cost, Incremental analysis, Job-order costing, Opportunity cost, Period, POHR, Prime, Process costing, Product, Sunk. Variable cost,

A ___________ remains constant in total amount. It does not vary with volume of activity, but varies per unit of activity.

_______________ remains constant if expressed on a unit basis. It changes in total as the level of activity changes.

Crestline Books, Inc., prints a small book titled The Picket Speller. The paper going into the manufacture of the book would be called direct materials and classified as a ___________ cost. In terms of cost behavior, the paper could also be described as ______________ cost with respect to the number of books printed.

Instead of compiling the words in the book, the author hired by the company could have earned considerable fees consulting with business organizations. The consulting fees forgone by the author would be called ____________.

The paper and other materials used in the manufacture of the book, combined with the direct labor cost involved, would be called _____________ cost.

The salary of Crestline Books president would be classified as a _____________ cost, and the salary will appear on the income statement as an expense in the time period in which it is incurred.

Depreciation on the equipment used to print the book would be classified by Crestline Books as a ___________ cost. However, depreciation on any equipment used by the company in selling and administrative activities would be classified as a _____________ cost. In terms of cost behavior, depreciation would probably be classified as a ______________ cost with respect to the number of books printed.

The _____________ is the amount remaining from sales revenues after variable expenses have been deducted. This amount contribute toward covering fixed expenses and then toward profits for the period.

A _____________ cost is also known as an inventoriable cost, since such costs go into the Work in Process inventory account and then into the Finished Goods inventory account before appearing on the income statement as part of cost of goods sold.

______________ is computed by dividing the total estimated manufacturing overhead cost for the period by the estimated total amount of the allocation base.

If ___________ is computed monthly or quarterly, seasonal factors in overhead costs or in the ______________ can produce fluctuations in the overhead rate.

Crestline Books sells the book through agents who are paid a commission on each book sold. The company would classify these commissions as a __________ cost. In terms of cost behavior, commissions would be classified as a _____________ cost.

Several hundred copies of the book were left over from the previous edition and are stored in a warehouse. The amount invested in these books would be called a _____________ cost.

Costs can often be classified in several ways. For example, Crestline Books pays $4,000 rent each month on the building that houses its printing press. The rent would be part of manufacturing overhead. In terms of cost behavior, it would be classified as a ____________ cost. The rent can also be classified as a _____________ cost.

Long Companys variables expenses are 60% of sales. A $1,200 increase in the companys fixed expenses will

increase the break-even point in sales by $ ____________.

_________________ is an analytical approach that focuses on those items of revenue and cost that will change as a result of a decision.

Reynold Enterprises sells a single product for $25. The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales. The company's net operating income will increase by $________ if one more unit is sold over BEP.

_____________ is used in companies that produce many units of a single product for long periods, whereas __________ is used in situations where many different products are produced each period.