Question 1

An engineering cost analysis is often not timely.

Accepted Answer

A) True 
 B)False

Question 2

A company could temporarily reduce or eliminate _____.

Accepted Answer

A) depreciation 
B) bond interest payment 
C) property taxes 
D) advertising and promotion 
A) depreciation 
B) bond interest payment 
C) property taxes 
D) advertising and promotion

Question 3

The following data has been assembled for Hippy Company.Use the high-low method. $$\begin{array}{l}
\text { Cost }& \text { Hours } \
\$ 24,400 & 2,000 \
37,000 & 2,300 \
34,280 & 2,850 \
36,400 & 3,600 \
44,160 & 3,900
\end{array}$$ The cost function is stated as _____.

Accepted Answer

A) Y = $26,672 + $1.84X 
B) Y = $21,360 + $1.52X 
C) Y = $10,112 + $8.64X 
D) Y = $3,600 + $10.40X 
A) Y = $26,672 + $1.84X 
B) Y = $21,360 + $1.52X 
C) Y = $10,112 + $8.64X 
D) Y = $3,600 + $10.40X

Question 4

In a linear regression, the x coefficient is the _____.

Accepted Answer

A) fixed cost per unit 
B) variable cost per unit 
C) total cost 
D) number of units produced 
A) fixed cost per unit 
B) variable cost per unit 
C) total cost 
D) number of units produced

Question 5

In the mixed?cost function, Y = $77,000 + $9.70X, the X signifies _____.

Accepted Answer

A) total fixed cost 
B) total cost 
C) variable cost per unit of cost driver 
D) number of units of the cost driver 
A) total fixed cost 
B) total cost 
C) variable cost per unit of cost driver 
D) number of units of the cost driver

Question 6

Discretionary fixed costs have obvious relationships with levels of capacity or output activity.

Accepted Answer

A) True 
 B)False

Question 7

When performing an engineering analysis, one must be careful because the observed time period may be abnormal.

Accepted Answer

A) True 
 B)False

Question 8

An example of a committed fixed cost is insurance.

Accepted Answer

A) True 
 B)False

Question 9

In the mixed cost equation, Y = F + VX, the F is the slope.

Accepted Answer

A) True 
 B)False

Question 10

If regression analysis is used when measuring cost behavior, plotting the cost against each of the potential cost drivers is not necessary.

Accepted Answer

A) True 
 B)False

Question 11

Skoda Company makes metal signs for businesses and residences.These signs are made of sheet metal, which the owner paints by hand.The owner has a good sense of his labor and materials cost behavior, but he is concerned that he does not have good measure of other support costs.Currently, he predicts support costs to be 30% of the cost of materials.Close investigation of the business reveals that $10 per direct labor hour is a more plausible and reliable support cost relationship. Consider estimated support costs of the following two signs that Skoda Company makes. $\begin{array}{llr}
&\text { Small Sign }& \text { Large Sign }\
\text { Materials cost } & \$ 300 & \$ 700 \
\text { Direct labor hours } & 5 & 11 \
\text { Number of components } & 8 & 13
\end{array}$ The amount of support costs assigned to a small sign using number of components as the cost driver is _____.

Accepted Answer

A) $90 
B) $50 
C) $200 
D) $37 
A) $90 
B) $50 
C) $200 
D) $37

Question 12

The high-low method of measuring cost behavior uses estimated costs.

Accepted Answer

A) True 
 B)False

Question 13

The measure of reliability, or goodness of fit

Accepted Answer

Coefficien

Question 14

The use of high-technology methods rather than labor usually means a much greater fixed-cost component to the total cost.

Accepted Answer

A) True 
 B)False

Question 15

These costs are the fixed costs of being able to achieve a desired level of production or to provide a desired level of service while maintaining product or service attributes, such as quality

Accepted Answer

The answer of These costs are the fixed costs of...

Question 16

The visual-fit method is more objective than the engineering analysis method.

Accepted Answer

A) True 
 B)False

Question 17

An example of a volume-driven cost in making a textbook is the salaries of the editorial staff.

Accepted Answer

A) True 
 B)False

Question 18

The first step in estimating or predicting costs as a function of appropriate cost drivers

Accepted Answer

The answer of The first step in estimating or predicting...

Question 19

Least-squares regression is the easiest method to approximate a cost function.

Accepted Answer

A) True 
 B)False

Question 20

A compensation plan where the sales force is paid salary plus commission is a _____.

Accepted Answer

A) purely variable cost 
B) discretionary fixed cost 
C) committed fixed cost 
D) mixed cost 
A) purely variable cost 
B) discretionary fixed cost 
C) committed fixed cost 
D) mixed cost

An engineering cost analysis is often not timely.

A company could temporarily reduce or eliminate _____.

The following data has been assembled for Hippy Company.Use the high-low method. Cost Hours \ 24,400 2,000 37,000 2,300 34,280 2,850 36,400 3,600 44,160 3,900 The cost function is stated as _____.

In a linear regression, the x coefficient is the _____.

In the mixed?cost function, Y = $77,000 + $9.70X, the X signifies _____.

Discretionary fixed costs have obvious relationships with levels of capacity or output activity.

When performing an engineering analysis, one must be careful because the observed time period may be abnormal.

An example of a committed fixed cost is insurance.

In the mixed cost equation, Y = F + VX, the F is the slope.

If regression analysis is used when measuring cost behavior, plotting the cost against each of the potential cost drivers is not necessary.

The high-low method of measuring cost behavior uses estimated costs.

The measure of reliability, or goodness of fit

The use of high-technology methods rather than labor usually means a much greater fixed-cost component to the total cost.

These costs are the fixed costs of being able to achieve a desired level of production or to provide a desired level of service while maintaining product or service attributes, such as quality

The visual-fit method is more objective than the engineering analysis method.

An example of a volume-driven cost in making a textbook is the salaries of the editorial staff.

The first step in estimating or predicting costs as a function of appropriate cost drivers

Least-squares regression is the easiest method to approximate a cost function.

A compensation plan where the sales force is paid salary plus commission is a _____.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 3: Measurement of Cost Behavior

An engineering cost analysis is often not timely.

A company could temporarily reduce or eliminate _____.

The following data has been assembled for Hippy Company.Use the high-low method. Cost Hours \ 24,400 2,000 37,000 2,300 34,280 2,850 36,400 3,600 44,160 3,900 The cost function is stated as _____.

In a linear regression, the x coefficient is the _____.

In the mixed?cost function, Y = $77,000 + $9.70X, the X signifies _____.

Discretionary fixed costs have obvious relationships with levels of capacity or output activity.

When performing an engineering analysis, one must be careful because the observed time period may be abnormal.

An example of a committed fixed cost is insurance.

In the mixed cost equation, Y = F + VX, the F is the slope.

If regression analysis is used when measuring cost behavior, plotting the cost against each of the potential cost drivers is not necessary.

The high-low method of measuring cost behavior uses estimated costs.

The measure of reliability, or goodness of fit

The use of high-technology methods rather than labor usually means a much greater fixed-cost component to the total cost.

These costs are the fixed costs of being able to achieve a desired level of production or to provide a desired level of service while maintaining product or service attributes, such as quality

The visual-fit method is more objective than the engineering analysis method.

An example of a volume-driven cost in making a textbook is the salaries of the editorial staff.

The first step in estimating or predicting costs as a function of appropriate cost drivers

Least-squares regression is the easiest method to approximate a cost function.

A compensation plan where the sales force is paid salary plus commission is a _____.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters