Question 1

_______________________ are costs that have both a fixed and a variable component.

Accepted Answer

Mixed costs

Question 2

Select the appropriate item for each of the definitions listed below.
a.
committed fixed cost
b.
discretionary fixed cost
c.
mixed cost
d.
step cost
-must be purchased in chunks

Accepted Answer

D

Question 3

MATCHING
Select the appropriate cost behavior for each of the costs listed below.
a.
variable
b.
fixed
-factory insurance

Accepted Answer

B

Question 4

Figure 3-2.
  
-Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

Accepted Answer

A)  $44,000 
B)  $88,000 
C)  $22,000 
D)  $132,000 
A)  $44,000 
B)  $88,000 
C)  $22,000 
D)  $132,000

Question 5

Figure 3-4.
Botana Company constructed the following formula for monthly utility cost.
Total utility cost = $1,200 + ($8.10* labor hours)
Assume that 775 labor hours are budgeted for the month of April.
-Refer to Figure 3-4. If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?

Accepted Answer

A)  $76,560 
B)  $78,960 
C)  $92,160 
D)  none of these are correct 
A)  $76,560 
B)  $78,960 
C)  $92,160 
D)  none of these are correct

Question 6

The ________________ is the range of output over which the assumed cost relationship is valid for the normal operations of a firm.

Accepted Answer

The answer of The ________________ is the range of output...

Question 7

Using a linear regression program, the term 'Intercept' refers to the variable cost.

Accepted Answer

A) True 
 B)False

Question 8

Select the appropriate type of fixed cost for each cost listed below.
a.
discretionary
b.
committed
-property taxes

Accepted Answer

The answer of Select the appropriate type of fixed cost...

Question 9

Which of the following would not be an example of a fixed cost?

Accepted Answer

A)  glue used to put together tables 
B)  insurance on factory building 
C)  depreciation on factory building 
D)  property taxes 
A)  glue used to put together tables 
B)  insurance on factory building 
C)  depreciation on factory building 
D)  property taxes

Question 10

Variable costs within the relevant range

Accepted Answer

A)  stay constant on a per unit basis as output changes. 
B)  increase in total as output increases. 
C)  decrease in total as output decreases. 
D)  All of these are correct. 
A)  stay constant on a per unit basis as output changes. 
B)  increase in total as output increases. 
C)  decrease in total as output decreases. 
D)  All of these are correct.

Question 11

Select the appropriate cost behavior for each of the costs listed below.
a.
variable
b.
fixed
-sales commissions

Accepted Answer

The answer of Select the appropriate cost behavior for each...

Question 12

If output increases by 50% and is still within the relevant range

Accepted Answer

A)  total fixed costs will increase by 50%. 
B)  per-unit fixed cost will remain the same. 
C)  total variable costs will increase by 50%. 
D)  net income will increase by 50%. 
A)  total fixed costs will increase by 50%. 
B)  per-unit fixed cost will remain the same. 
C)  total variable costs will increase by 50%. 
D)  net income will increase by 50%.

Question 13

A fixed cost within the relevant range

Accepted Answer

A)  increases in total as output decreases. 
B)  does not change in total as output changes. 
C)  decreases in total as output increases. 
D)  All of these are correct. 
A)  increases in total as output decreases. 
B)  does not change in total as output changes. 
C)  decreases in total as output increases. 
D)  All of these are correct.

Question 14

Select the appropriate cost behavior for each of the costs listed below.
a.
variable
b.
fixed
-license fees on automobiles

Accepted Answer

The answer of Select the appropriate cost behavior for each...

Question 15

Figure 3-8.
Martin Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.
   Coefficients shown by a regression program are:
  
-Refer to Figure 3-8. Using the results of regression, what would be the total budgeted cost for electricity next month assuming that 615 machine hours are budgeted?

Accepted Answer

A)  $2,225 
B)  $8,240 
C)  $8,085 
D)  $4,015 
A)  $2,225 
B)  $8,240 
C)  $8,085 
D)  $4,015

Question 16

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
a.
variable
b.
fixed
-cost of assembly line workers

Accepted Answer

The answer of Select the appropriate cost behavior for the...

Question 17

Select the appropriate item for each of the definitions listed below.
a.
high-low method
b.
scatter-graph method
c.
method of least squares
-allows a cost analyst to inspect the data visually

Accepted Answer

The answer of Select the appropriate item for each of...

Question 18

A factor that causes or leads to a change in a cost or activity is a(n)

Accepted Answer

A)  cost formula. 
B)  step cost. 
C)  mixed cost. 
D)  driver. 
A)  cost formula. 
B)  step cost. 
C)  mixed cost. 
D)  driver.

Question 19

Figure 3-3.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
  
-Refer to Figure 3-3. Using the high-low method calculate the variable rate for the lease cost

Accepted Answer

A)  $38.18 
B)  $38.20 
C)  $61.50 
D)  $37.25 
A)  $38.18 
B)  $38.20 
C)  $61.50 
D)  $37.25

Question 20

A mixed cost

Accepted Answer

A)  remains constant when the output level increases. 
B)  cannot be separated. 
C)  contains both a fixed and variable component. 
D)  All of these are correct. 
A)  remains constant when the output level increases. 
B)  cannot be separated. 
C)  contains both a fixed and variable component. 
D)  All of these are correct.

_______________________ are costs that have both a fixed and a variable component.

Select the appropriate item for each of the definitions listed below. a. committed fixed cost b. discretionary fixed cost c. mixed cost d. step cost -must be purchased in chunks

MATCHING Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -factory insurance

Figure 3-2. -Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

The ________________ is the range of output over which the assumed cost relationship is valid for the normal operations of a firm.

Using a linear regression program, the term 'Intercept' refers to the variable cost.

Select the appropriate type of fixed cost for each cost listed below. a. discretionary b. committed -property taxes

Which of the following would not be an example of a fixed cost?

Variable costs within the relevant range

Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -sales commissions

If output increases by 50% and is still within the relevant range

A fixed cost within the relevant range

Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -license fees on automobiles

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. a. variable b. fixed -cost of assembly line workers

Select the appropriate item for each of the definitions listed below. a. high-low method b. scatter-graph method c. method of least squares -allows a cost analyst to inspect the data visually

A factor that causes or leads to a change in a cost or activity is a(n)

A mixed cost

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: Cost Behavior

_______________________ are costs that have both a fixed and a variable component.

Select the appropriate item for each of the definitions listed below. a. committed fixed cost b. discretionary fixed cost c. mixed cost d. step cost -must be purchased in chunks

MATCHING Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -factory insurance

Figure 3-2. -Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

The ________________ is the range of output over which the assumed cost relationship is valid for the normal operations of a firm.

Using a linear regression program, the term 'Intercept' refers to the variable cost.

Select the appropriate type of fixed cost for each cost listed below. a. discretionary b. committed -property taxes

Which of the following would not be an example of a fixed cost?

Variable costs within the relevant range

Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -sales commissions

If output increases by 50% and is still within the relevant range

A fixed cost within the relevant range

Select the appropriate cost behavior for each of the costs listed below. a. variable b. fixed -license fees on automobiles

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. a. variable b. fixed -cost of assembly line workers

Select the appropriate item for each of the definitions listed below. a. high-low method b. scatter-graph method c. method of least squares -allows a cost analyst to inspect the data visually

A factor that causes or leads to a change in a cost or activity is a(n)

A mixed cost

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters