Exam 3: Cost Behavior

Figure 3-9.The following cost formula was developed using monthly data for a retail clothing store.Total cost = $75,620 + ($242 * number of customers) -Refer to Figure 3-9. The term "total cost"

A mixed cost

Using regression, the value of 'X Variable 1' equals the slope of the line.

Select the appropriate type of fixed cost for each cost listed below. -cost of leasing

Using the high-low method, the variable rate of a mixed cost equals

Figure 3-14.Blacken Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past five months were collected. -Refer to Figure 3-14. Using a regression program, the yearly utility cost equation (with all variables to the nearest penny) is

A driver is a factor that causes or leads to a change in a cost.

Figure 3-12.The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance. The following computer output was received: The driver used was the number of machine hours. -Refer to Figure 3-12. What was the cost formula for equipment maintenance?

If at a given volume total costs and fixed costs are known, the variable costs per unit may be computed as follows:

The ______________________________ is a statistical way to find the best-fitting line through a set of data points.

Step costs

Figure 3-14.Blacken Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past five months were collected. -Refer to Figure 3-14. Using a regression program, the value of the X Variable 1 (rounded to the nearest penny) is

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

Select the appropriate item for each of the definitions listed below. -may involve a long-term contract

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

Select the appropriate item for each of the definitions listed below. -involves plotting data points on a graph

Which of the following would probably be a mixed cost?

Select the appropriate item for each of the definitions listed below. -can be changed by management

Select the appropriate cost behavior for each of the costs listed below. -indirect materials

Figure 3-13.The following 6 months of data were collected on electricity cost and the number of machine hours in a factory. -Refer to Figure 3-13. A dependent variable value used in calculating the cost line using the high-low method is: