Question 1

During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the experience of competitors.

Accepted Answer

A) True 
 B)False

Question 2

In a regression analysis, the constant is a measure of reliability.

Accepted Answer

A) True 
 B)False

Question 3

Understanding relations between costs and their cost drivers allows managers in all types of organizations to make proper short- run marketing decisions.

Accepted Answer

A) True 
 B)False

Question 4

In a linear regression, the x coefficient is the:

Accepted Answer

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

Question 5

The following data has been assembled for Yippee Company. Use the high- low method. $$\begin{array} { l l } 
\text { Cost } & \text { Hours } \
\$ 24,400 & 2,000 \
34,000 & 2,600 \
31,280 & 2,450 \
36,400 & 3,000 \
44,160 & 3,900
\end{array}$$ The cost function is stated as:

Accepted Answer

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

Question 6

Committed fixed costs usually arise from the possession of facilities, equipment, and basic organization.

Accepted Answer

A) True 
 B)False

Question 7

Given the mixed- cost function Y = $350,000 + $25X and assuming that X = $9.000, answer the following questions:
a. What is the total fixed cost?
b. What is the total variable cost?
c. What is the total cost?

Accepted Answer

a. $350,000
b. $25 x

Question 8

The account analysis method of measuring cost behavior is objective.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A car lease payment computed by the number of miles driven can be identified as a:

Accepted Answer

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

Question 11

Presented below is the production data for the first six months of the year for the mixed costs incurred by Scott Company. $$\begin{array} { l l l } 
\text { Month } & \text { Cost } & \text { Units } \
\text { January } & \$ 4,890 & 4,100 \
\text { February } & 4,024 & 3,200 \
\text { March } & 6,480 & 5,300 \
\text { April } & 8,840 & 7,500 \
\text { May } & 5,800 & 4,800 \
\text { June } & 7,336 & 6,600
\end{array}$$ Scott Company uses the high- low method to analyze mixed costs. The cost function is stated as:

Accepted Answer

A)  Y = $3,562.30 + $0.144X 
B)  Y = $440 + $1.12X 
C)  Y = $7,850 + $0.132X 
D)  Y = $107.20 + $1.416X 
A)  Y = $3,562.30 + $0.144X 
B)  Y = $440 + $1.12X 
C)  Y = $7,850 + $0.132X 
D)  Y = $107.20 + $1.416X

Question 12

A disadvantage of engineering cost analysis is that:

Accepted Answer

A)  its failure to produce a cost function 
B)  the information produced may not be reliable 
C)  it is not acceptable under GAAP 
D)  the information produced may not be timely 
A)  its failure to produce a cost function 
B)  the information produced may not be reliable 
C)  it is not acceptable under GAAP 
D)  the information produced may not be timely

Question 13

Each cost in a manufacturing operation must be either fixed or variable.

Accepted Answer

A) True 
 B)False

During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the experience of competitors.

In a regression analysis, the constant is a measure of reliability.

Understanding relations between costs and their cost drivers allows managers in all types of organizations to make proper short- run marketing decisions.

In a linear regression, the x coefficient is the:

The following data has been assembled for Yippee Company. Use the high- low method. Cost Hours \ 24,400 2,000 34,000 2,600 31,280 2,450 36,400 3,000 44,160 3,900 The cost function is stated as:

Committed fixed costs usually arise from the possession of facilities, equipment, and basic organization.

Given the mixed- cost function Y = $350,000 + $25X and assuming that X = $9.000, answer the following questions: a. What is the total fixed cost? b. What is the total variable cost? c. What is the total cost?

The account analysis method of measuring cost behavior is objective.

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

A car lease payment computed by the number of miles driven can be identified as a:

A disadvantage of engineering cost analysis is that:

Each cost in a manufacturing operation must be either fixed or variable.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters

Exam 3: Measurement of Cost Behavior

During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the experience of competitors.

In a regression analysis, the constant is a measure of reliability.

Understanding relations between costs and their cost drivers allows managers in all types of organizations to make proper short- run marketing decisions.

In a linear regression, the x coefficient is the:

The following data has been assembled for Yippee Company. Use the high- low method. Cost Hours \ 24,400 2,000 34,000 2,600 31,280 2,450 36,400 3,000 44,160 3,900 The cost function is stated as:

Committed fixed costs usually arise from the possession of facilities, equipment, and basic organization.

Given the mixed- cost function Y = $350,000 + $25X and assuming that X = $9.000, answer the following questions: a. What is the total fixed cost? b. What is the total variable cost? c. What is the total cost?

The account analysis method of measuring cost behavior is objective.

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

A car lease payment computed by the number of miles driven can be identified as a:

A disadvantage of engineering cost analysis is that:

Each cost in a manufacturing operation must be either fixed or variable.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters