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Match the Following Terms with the Descriptions Below

Question 50

Matching

Match the following terms with the descriptions below.

Premises:
The span of operating activity that is considered normal for a company.
A revenue that changes in direct proportion to the change in activity.
How a cost reacts to change in the level of operating activity
A cost that does not change in total as the amount of activity changes
A cost that changes in direct proportion to the change in activity.
Basis that reflect the consumption or provision of resources.
A revenue that changes, but not proportionately, to a change in activity.
A cost that varies, but not proportionately, to a change in activity.
How a revenue reacts to a change in the level of operating activity.
A revenue that does not change in total as activity changes.
Responses:
Revenue Behavior
Activity Driver
Variable Revenue
Variable Cost
Cost Behavior
Fixed Revenue
Mixed Revenue
Fixed Cost
Mixed Cost
Relevant Range

Correct Answer:

The span of operating activity that is considered normal for a company.
A revenue that changes in direct proportion to the change in activity.
How a cost reacts to change in the level of operating activity
A cost that does not change in total as the amount of activity changes
A cost that changes in direct proportion to the change in activity.
Basis that reflect the consumption or provision of resources.
A revenue that changes, but not proportionately, to a change in activity.
A cost that varies, but not proportionately, to a change in activity.
How a revenue reacts to a change in the level of operating activity.
A revenue that does not change in total as activity changes.
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