Question 1

Which of the following is a drawback of using regression analysis?

Accepted Answer

A) It is difficult to implement. 
B) It makes a number of assumptions about the data, and accounting data sometimes do not satisfy these assumptions. 
C) It is not a well-defined statistical method. 
D) It provides only one statistic to evaluate the data. 
E) None of the above are drawbacks of using regression analysis. 
A) It is difficult to implement. 
B) It makes a number of assumptions about the data, and accounting data sometimes do not satisfy these assumptions. 
C) It is not a well-defined statistical method. 
D) It provides only one statistic to evaluate the data. 
E) None of the above are drawbacks of using regression analysis.

Question 2

Account classification involves categorizing cost accounts as:

Accepted Answer

A) Product costs and administrative costs. 
B) Contribution costs and product costs. 
C) Variable costs and fixed costs. 
D) Variable costs and product costs. 
E) Fixed costs from product costs. 
A) Product costs and administrative costs. 
B) Contribution costs and product costs. 
C) Variable costs and fixed costs. 
D) Variable costs and product costs. 
E) Fixed costs from product costs.

Question 3

The regression analysis method results in the least error between the estimated and true total cost line.

Accepted Answer

A) True 
 B)False

Question 4

Capacity costs are controllable in the short term.

Accepted Answer

A) True 
 B)False

Question 5

A disadvantage of using the regression analysis method is that it provides only one statistic to evaluate the data.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is not true?

Accepted Answer

A) Using the account classification method requires us to examine each cost account in detail. 
B) Using the account classification method frequently requires considerable knowledge and experience. 
C) Using the account classification method may be a daunting task for very large firms that offer a wide range of products and have expansive account lists. 
D) Using the account classification method requires us to use statistical analysis. 
E) All of the above are correct statements. 
A) Using the account classification method requires us to examine each cost account in detail. 
B) Using the account classification method frequently requires considerable knowledge and experience. 
C) Using the account classification method may be a daunting task for very large firms that offer a wide range of products and have expansive account lists. 
D) Using the account classification method requires us to use statistical analysis. 
E) All of the above are correct statements.

Question 7

A useful step for estimating controllable costs is:

Accepted Answer

A) Separating product costs from administrative costs. 
B) Separating contribution costs from product costs. 
C) Separating variable costs from fixed costs. 
D) Separating variable costs from product costs. 
E) Separating fixed costs from product costs. 
A) Separating product costs from administrative costs. 
B) Separating contribution costs from product costs. 
C) Separating variable costs from fixed costs. 
D) Separating variable costs from product costs. 
E) Separating fixed costs from product costs.

Which of the following is a drawback of using regression analysis?

Account classification involves categorizing cost accounts as:

The regression analysis method results in the least error between the estimated and true total cost line.

Capacity costs are controllable in the short term.

A disadvantage of using the regression analysis method is that it provides only one statistic to evaluate the data.

Which of the following statements is not true?

A useful step for estimating controllable costs is:

Accounting: Information for Decision Making

Identifying and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations

Activity-Based Costing Management

Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job-Costing Systems

Process-Costing Systems

Refining Systems: Support Activity

Filters

Exam 4: Techniques for Estimating Fixed and Variable Costs

Which of the following is a drawback of using regression analysis?

Account classification involves categorizing cost accounts as:

The regression analysis method results in the least error between the estimated and true total cost line.

Capacity costs are controllable in the short term.

A disadvantage of using the regression analysis method is that it provides only one statistic to evaluate the data.

Which of the following statements is not true?

A useful step for estimating controllable costs is:

Accounting: Information for Decision Making

Identifying and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations

Activity-Based Costing Management

Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job-Costing Systems

Process-Costing Systems

Refining Systems: Support Activity

Filters