Question 1

Which of the following would not typically be classified as a discretionary fixed cost?

Accepted Answer

A) Equipment depreciation. 
B) Employee development (education)programs. 
C) Advertising. 
D) Outlays for research and development. 
E) Charitable contributions. 
A) Equipment depreciation. 
B) Employee development (education)programs. 
C) Advertising. 
D) Outlays for research and development. 
E) Charitable contributions. A

Question 2

Costs that remain the same over a wide range of activity,but jump to a different amount outside that range,are termed:

Accepted Answer

A) step-fixed costs. 
B) step-variable costs. 
C) semivariable costs. 
D) curvilinear costs. 
E) mixed costs. 
A) step-fixed costs. 
B) step-variable costs. 
C) semivariable costs. 
D) curvilinear costs. 
E) mixed costs. A

Question 3

Wesley Enterprises has determined that three variables play a key role in determining company revenues.To arrive at an objective forecast of revenues for the next accounting period,Wesley should use:

Accepted Answer

A) simple regression. 
B) multiple regression. 
C) a scatter diagram. 
D) complex regression. 
E) the high-low method. 
A) simple regression. 
B) multiple regression. 
C) a scatter diagram. 
D) complex regression. 
E) the high-low method. B

Question 4

Which of the following costs changes in direct proportion to a change in the activity level?

Accepted Answer

A) Variable cost. 
B) Fixed cost. 
C) Semivariable cost. 
D) Step-variable cost. 
E) Step-fixed cost. 
A) Variable cost. 
B) Fixed cost. 
C) Semivariable cost. 
D) Step-variable cost. 
E) Step-fixed cost.

Question 5

The relevant range is that range of activity:

Accepted Answer

A) where a company achieves its maximum efficiency. 
B) where units produced equal units sold. 
C) where management expects the firm to operate. 
D) where the firm will earn a profit. 
E) where expected results are abnormally high. 
A) where a company achieves its maximum efficiency. 
B) where units produced equal units sold. 
C) where management expects the firm to operate. 
D) where the firm will earn a profit. 
E) where expected results are abnormally high.

Question 6

Which of the following methods of cost estimation relies on only two data points?

Accepted Answer

A) Least-squares regression. 
B) The high-low method. 
C) The visual-fit method. 
D) Account analysis. 
E) Multiple regression. 
A) Least-squares regression. 
B) The high-low method. 
C) The visual-fit method. 
D) Account analysis. 
E) Multiple regression.

Question 7

The relationship between cost and activity is termed:

Accepted Answer

A) cost estimation. 
B) cost prediction. 
C) cost behavior. 
D) cost analysis. 
E) cost approximation. 
A) cost estimation. 
B) cost prediction. 
C) cost behavior. 
D) cost analysis. 
E) cost approximation.

Question 8

A forecast of a cost at a particular level of activity is termed:

Accepted Answer

A) cost estimation. 
B) cost prediction. 
C) cost behavior. 
D) cost analysis. 
E) cost approximation. 
A) cost estimation. 
B) cost prediction. 
C) cost behavior. 
D) cost analysis. 
E) cost approximation.

Question 9

On the basis of this information,what were total maintenance costs when the company experienced 23,000 machine hours?

Accepted Answer

A) $193,200. 
B) $550,000. 
C) $734,800. 
D) $743,200. 
E) $760,000. 
A) $193,200. 
B) $550,000. 
C) $734,800. 
D) $743,200. 
E) $760,000.

Question 10

The cost types shown above are identified by behavior as:

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 11

When graphed,a typical fixed cost appears as:

Accepted Answer

A) a horizontal line. 
B) a vertical line. 
C) a u-shaped line. 
D) a diagonal line that slopes downward to the right. 
E) a diagonal line that slopes upward to the right. 
A) a horizontal line. 
B) a vertical line. 
C) a u-shaped line. 
D) a diagonal line that slopes downward to the right. 
E) a diagonal line that slopes upward to the right.

Question 12

The variable utilities cost per machine hour is:

Accepted Answer

A) $0.18. 
B) $4.50. 
C) $5.00. 
D) $5.50. 
E) an amount other than those listed abovE. 
A) $0.18. 
B) $4.50. 
C) $5.00. 
D) $5.50. 
E) an amount other than those listed abovE.

Question 13

A review of Parrish Corporation's accounting records found that at a volume of 90,000 units,the variable and fixed cost per unit amounted to $8 and $4,respectively.On the basis of this information,what amount of total cost would Parrish anticipate at a volume of 85,000 units?

Accepted Answer

A) $1,020,000. 
B) $1,040,000. 
C) $1,060,000. 
D) $1,080,000. 
E) Some other amount not listed abovE. 
A) $1,020,000. 
B) $1,040,000. 
C) $1,060,000. 
D) $1,080,000. 
E) Some other amount not listed abovE.

Question 14

Costs that result from a company's ownership or use of facilities and its basic organizational structure are termed:

Accepted Answer

A) discretionary fixed costs. 
B) committed fixed costs. 
C) discretionary variable costs. 
D) committed variable costs. 
E) engineered costs. 
A) discretionary fixed costs. 
B) committed fixed costs. 
C) discretionary variable costs. 
D) committed variable costs. 
E) engineered costs.

Question 15

If Yang produces 10,000 units,the total cost would be:

Accepted Answer

A) $90,000. 
B) $100,000. 
C) $110,000. 
D) $125,000. 
E) an amount other than those given abovE. 
A) $90,000. 
B) $100,000. 
C) $110,000. 
D) $125,000. 
E) an amount other than those given abovE.

Question 16

Mastel Company has a variable selling cost.If sales volume increases,how will the total variable cost and the variable cost per unit behave?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 17

On the basis of this information,the fixed cost was:

Accepted Answer

A) $184,800. 
B) $210,000. 
C) $550,000. 
D) $734,800. 
E) $760,000. 
A) $184,800. 
B) $210,000. 
C) $550,000. 
D) $734,800. 
E) $760,000.

Question 18

A variable cost that has a definitive physical relationship to the activity measure is called a(n):

Accepted Answer

A) discretionary cost. 
B) engineered cost. 
C) managed cost. 
D) programmed cost. 
E) committed cost. 
A) discretionary cost. 
B) engineered cost. 
C) managed cost. 
D) programmed cost. 
E) committed cost.

Question 19

Within the relevant range of activity,costs:

Accepted Answer

A) can be estimated with reasonable accuracy. 
B) can be expected to change radically. 
C) exhibit decreasing marginal cost patterns. 
D) exhibit increasing marginal cost patterns. 
E) cannot be estimated satisfactorily. 
A) can be estimated with reasonable accuracy. 
B) can be expected to change radically. 
C) exhibit decreasing marginal cost patterns. 
D) exhibit increasing marginal cost patterns. 
E) cannot be estimated satisfactorily.

Question 20

Which of the following costs exhibits both decreasing and increasing marginal costs over a specific range of activity?

Accepted Answer

A) Semivariable cost. 
B) Curvilinear cost. 
C) Step-fixed cost. 
D) Step-variable cost. 
E) Fixed cost. 
A) Semivariable cost. 
B) Curvilinear cost. 
C) Step-fixed cost. 
D) Step-variable cost. 
E) Fixed cost.

Which of the following would not typically be classified as a discretionary fixed cost?

Costs that remain the same over a wide range of activity,but jump to a different amount outside that range,are termed:

Wesley Enterprises has determined that three variables play a key role in determining company revenues.To arrive at an objective forecast of revenues for the next accounting period,Wesley should use:

Which of the following costs changes in direct proportion to a change in the activity level?

The relevant range is that range of activity:

Which of the following methods of cost estimation relies on only two data points?

The relationship between cost and activity is termed:

A forecast of a cost at a particular level of activity is termed:

On the basis of this information,what were total maintenance costs when the company experienced 23,000 machine hours?

The cost types shown above are identified by behavior as:

When graphed,a typical fixed cost appears as:

The variable utilities cost per machine hour is:

A review of Parrish Corporation's accounting records found that at a volume of 90,000 units,the variable and fixed cost per unit amounted to $8 and $4,respectively.On the basis of this information,what amount of total cost would Parrish anticipate at a volume of 85,000 units?

Costs that result from a company's ownership or use of facilities and its basic organizational structure are termed:

If Yang produces 10,000 units,the total cost would be:

Mastel Company has a variable selling cost.If sales volume increases,how will the total variable cost and the variable cost per unit behave?

On the basis of this information,the fixed cost was:

A variable cost that has a definitive physical relationship to the activity measure is called a(n):

Within the relevant range of activity,costs:

Which of the following costs exhibits both decreasing and increasing marginal costs over a specific range of activity?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 6: Activity Analysis,cost Behavior,and Cost Estimation

Which of the following would not typically be classified as a discretionary fixed cost?

Costs that remain the same over a wide range of activity,but jump to a different amount outside that range,are termed:

Wesley Enterprises has determined that three variables play a key role in determining company revenues.To arrive at an objective forecast of revenues for the next accounting period,Wesley should use:

Which of the following costs changes in direct proportion to a change in the activity level?

The relevant range is that range of activity:

Which of the following methods of cost estimation relies on only two data points?

The relationship between cost and activity is termed:

A forecast of a cost at a particular level of activity is termed:

On the basis of this information,what were total maintenance costs when the company experienced 23,000 machine hours?

The cost types shown above are identified by behavior as:

When graphed,a typical fixed cost appears as:

The variable utilities cost per machine hour is:

A review of Parrish Corporation's accounting records found that at a volume of 90,000 units,the variable and fixed cost per unit amounted to $8 and $4,respectively.On the basis of this information,what amount of total cost would Parrish anticipate at a volume of 85,000 units?

Costs that result from a company's ownership or use of facilities and its basic organizational structure are termed:

If Yang produces 10,000 units,the total cost would be:

Mastel Company has a variable selling cost.If sales volume increases,how will the total variable cost and the variable cost per unit behave?

On the basis of this information,the fixed cost was:

A variable cost that has a definitive physical relationship to the activity measure is called a(n):

Within the relevant range of activity,costs:

Which of the following costs exhibits both decreasing and increasing marginal costs over a specific range of activity?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters