Question 1

The method of least squares

Accepted Answer

A)  uses the results of regression analysis to construct a cost formula. 
B)  is the least accurate method. 
C)  analyzes a cost relationship by plotting the data points on a graph. 
D)  can easily be calculated by hand. 
A)  uses the results of regression analysis to construct a cost formula. 
B)  is the least accurate method. 
C)  analyzes a cost relationship by plotting the data points on a graph. 
D)  can easily be calculated by hand.

Question 2

Laconic Company manufactures ultra sound equipment. Based on past experience, Laconic has found that total annual repair and maintenance cost can be represented by the following formula: total annual repair and maintenance cost = $205,000 + $7.50x, where x = machine hours. Last year, Laconic incurred 145,000 machine hours.
Required:

Accepted Answer

The answer of Laconic Company manufactures ultra sound equipment. Based...

Question 3

Cost relationships may change at output levels outside of the relevant range.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

Select the appropriate item for each of the definitions listed below.
a.
high-low method
b.
scatter-graph method
c.
method of least squares
-relies on the quality of the subjective judgment of the analyst

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past 6 months were collected.   Select the correct set of high and low months.
High Low

Accepted Answer

A)  June April 
B)  June May 
C)  January February 
D)  April May 
A)  June April 
B)  June May 
C)  January February 
D)  April May

Question 8

The cost of raw materials used is usually a fixed cost.

Accepted Answer

A) True 
 B)False

Question 9

The _________________________ is a way to see the cost relationship by plotting the data points on a graph.

Accepted Answer

The answer of The _________________________ is a way to see...

Question 10

Figure 3-1.
Total cost = Fixed cost + (Variable Rate * Output)
-Refer to Figure 3-1. In the cost formula above which element would be the dependent variable?

Accepted Answer

A)  variable rate 
B)  fixed cost 
C)  total cost 
D)  output 
A)  variable rate 
B)  fixed cost 
C)  total cost 
D)  output

Question 11

Which of the following would be an example of a fixed cost?

Accepted Answer

A)  wages for an assembly line worker 
B)  electric bill 
C)  depreciation on equipment 
D)  materials used 
A)  wages for an assembly line worker 
B)  electric bill 
C)  depreciation on equipment 
D)  materials used

Question 12

Why would cost behavior change outside of the relevant range?

Accepted Answer

The relevant range is the normal range o

Question 13

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

Accepted Answer

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

Question 14

The scatter-graph method

Accepted Answer

A)  allows a cost analyst to inspect data visually. 
B)  is objective. 
C)  only uses two data points. 
D)  none of these are correct 
A)  allows a cost analyst to inspect data visually. 
B)  is objective. 
C)  only uses two data points. 
D)  none of these are correct

Question 15

Boswan Company incurred the following costs and machine hours for the months of April and May.
   Required:

Accepted Answer

The answer of Boswan Company incurred the following costs and...

Question 16

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

Accepted Answer

A)  $180,000 
B)  $360,000 
C)  $150,000 
D)  $240,000 
A)  $180,000 
B)  $360,000 
C)  $150,000 
D)  $240,000

Question 19

Select the appropriate item for each of the definitions listed below.
a.
dependant variable
b.
independent variable
c.
intercept
d.
slope
-it measures output and explains changes in cost

Accepted Answer

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

Question 20

If output increases

Accepted Answer

A)  per-unit fixed cost will increase. 
B)  total variable costs will increase. 
C)  per-unit variable costs will increase. 
D)  per-unit variable costs will decrease. 
A)  per-unit fixed cost will increase. 
B)  total variable costs will increase. 
C)  per-unit variable costs will increase. 
D)  per-unit variable costs will decrease.

The method of least squares

Cost relationships may change at output levels outside of the relevant range.

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

Select the appropriate item for each of the definitions listed below. a. high-low method b. scatter-graph method c. method of least squares -relies on the quality of the subjective judgment of the analyst

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

Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past 6 months were collected. Select the correct set of high and low months. High Low

The cost of raw materials used is usually a fixed cost.

The _________________________ is a way to see the cost relationship by plotting the data points on a graph.

Figure 3-1. Total cost = Fixed cost + (Variable Rate * Output) -Refer to Figure 3-1. In the cost formula above which element would be the dependent variable?

Which of the following would be an example of a fixed cost?

Why would cost behavior change outside of the relevant range?

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

The scatter-graph method

Boswan Company incurred the following costs and machine hours for the months of April and May. Required:

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

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

Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

Select the appropriate item for each of the definitions listed below. a. dependant variable b. independent variable c. intercept d. slope -it measures output and explains changes in cost

If output increases

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

The method of least squares

Cost relationships may change at output levels outside of the relevant range.

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

Select the appropriate item for each of the definitions listed below. a. high-low method b. scatter-graph method c. method of least squares -relies on the quality of the subjective judgment of the analyst

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

Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past 6 months were collected. Select the correct set of high and low months. High Low

The cost of raw materials used is usually a fixed cost.

The _________________________ is a way to see the cost relationship by plotting the data points on a graph.

Figure 3-1. Total cost = Fixed cost + (Variable Rate * Output) -Refer to Figure 3-1. In the cost formula above which element would be the dependent variable?

Which of the following would be an example of a fixed cost?

Why would cost behavior change outside of the relevant range?

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

The scatter-graph method

Boswan Company incurred the following costs and machine hours for the months of April and May. Required:

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

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

Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

Select the appropriate item for each of the definitions listed below. a. dependant variable b. independent variable c. intercept d. slope -it measures output and explains changes in cost

If output increases

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