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table [ [ Definition , Term ] , [ The way in which total cost behaves or changes, when some measure of activity changes.,None
tableDefinitionTermThe way in which total cost behaves or changes, when some measure of activity changes.,None of these are correctThe range of activity over which assumptions about cost behavior hold true.,tableContribution marginContribution margin income:A cost that changes in total in direct proportion to changes in activity while the per unit cost remains constant.A cost that is fixed over a narrow range of activity and increases multiple times across a relevant range.A cost that remains the same in total regardless of the activity level.Both the total cost and the cost per unit change with the level of activity.,Contribution margin ratioA cost that is fixed over a wide range of activity, but increases when a capacity limit is reached.The expression of the relationship between total cost and activity expressed as Fixed costtvisual representation of the relationship between total cost and activity level.,ScattergraphThe use of the two most extreme activity points to determine the variable cost per unit.,Relevant rangeA measure of how well the data are represented by the formula Contribution marginThe difference between sales revenue and variable costs.,Contribution marginThe difference between the unit sales price and the unit variable costs.,Unit contribution marginUnit contribution margin divided by the unit sales price.,Contribution margin ratioAn external reporting method that reflects both the fixed and variable manufacturing costs in cost of goods sold.,Linearity assumptionA costing method that focuses on cost behavior.,Stepvariable cost
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