Term
Contribution Margin Statement 

Definition
recognizes income data by grouping the cost by variability. 


Term

Definition
the amount that remains after subtracting variable cost from revenue 


Term

Definition
The variable and fixed portions of a company's cost. 


Term
Account Classification Method 

Definition
involves systematically categorizing a company's cost accounts as fixed or variable 


Term

Definition
uses two observations of aggregate cost data to estimate total fixed cost and variable cost. 


Term

Definition
((Total High Cost)(Total Low Cost))/ ((Total High units)(Total Low Units)) 


Term
Account Classification Flaws 

Definition
It can be very difficult to qualify which cost are variable and which are fixed. 


Term

Definition
It is a rough estimate. It only uses two points so the room for error is much higher than if they were to use multiple points 


Term

Definition
a statistical method for estimating fixed and variable cost. Uses all available data to come up with a line of best fit 


Term
Evaluation of Regression Analysis 

Definition
It makes a lot of assumptions about data, and accounting data sometimes do not satisfy these assumptions. 


Term

Definition
Normal range of operations 


Term

Definition
this is calculated by subtracting fixed cost traceable to a product from its contrbutino margin. 

