Exam 16: Managing Costs and Uncertainty

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

Cost control should be viewed as a short-term process.

If a cost can be reduced to zero in the short run without significantly harming the organization,the cost is a

Control of engineered costs is frequently achieved through the use of

For cost control purposes,actual costs should be compared to

What factors influence the total level of discretionary costs in an organization?

For cost control purposes,fixed costs are classified as

Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost

Effective cost control begins in the planning stage of the management cycle.

If a firm is successful in meeting its output goal for a period,the firm has been

Discretionary costs are often difficult to control because

Property taxes on an organization's plant building are considered as committed costs.

Cost containment practices by a firm would not be effective for cost increases caused by

Discuss the various elements of the cost control process.

A logical structure of activities designed to analyze and evaluate management of expenditures is a cost

Which kind of costs could be eliminated by closing a sales office?

In the least-squares equation,y = a + bX,a represents

Davis Corporation Davis Corporation manufactures and sells baseball bats.For a recent period,its production and sales objectives were each set at 20,000 units.Also,for this period the firm had estimated costs as follows: Refer to Davis Corporation.Note that the budget for discretionary fixed costs is $40,000.If actual discretionary fixed costs were $50,000,could cost control have still been effective? Explain.

Which of the following strategies is used to deal with uncertainty related to a specific event?

Research and development expenses are normally considered to be discretionary costs.