Question 1

Select the appropriate type of fixed cost for each cost listed below.
-cost of executive training seminars

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 2

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

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 3

Select the appropriate item for each of the definitions listed below.
-results in the best-fitting line through a set of data points

Accepted Answer

A) high-low method 
B) scatter-graph method 
C) method of least squares 
A) high-low method 
B) scatter-graph method 
C) method of least squares

Question 4

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-depreciation on robotic equipment

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 5

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

Accepted Answer

The answer of _______________________ are costs that have both a...

Question 6

Figure 3-7.Margola Company produces hand-held calculators. The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months were collected.   Coefficients shown by a regression program are:
  
-Refer to Figure 3-7. Using the results of regression, what would be the budgeted cost for maintenance next month assuming that 340 machine hours are budgeted?

Accepted Answer

A)  $4,230 
B)  $3,928 
C)  $1,150 
D)  $2,943 
A)  $4,230 
B)  $3,928 
C)  $1,150 
D)  $2,943

Question 7

Select the appropriate item for each of the definitions listed below.
-it corresponds to the fixed cost

Accepted Answer

A) dependant variable 
B) independent variable 
C) intercept 
D) slope 
A) dependant variable 
B) independent variable 
C) intercept 
D) slope

Question 8

When a mixed cost is graphed the slope of the line equals

Accepted Answer

A)  the variable cost per unit of the activity driver. 
B)  the total variable cost. 
C)  the sales price per unit. 
D)  the total fixed cost. 
A)  the variable cost per unit of the activity driver. 
B)  the total variable cost. 
C)  the sales price per unit. 
D)  the total fixed cost.

Question 9

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 slope?

Accepted Answer

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

Question 10

Which of the following would be a variable cost for a dentist's office?

Accepted Answer

A)  depreciation on equipment 
B)  cost of renting office space 
C)  cost of teeth cleaning material 
D)  salary of dentist 
A)  depreciation on equipment 
B)  cost of renting office space 
C)  cost of teeth cleaning material 
D)  salary of dentist

Question 11

Select the appropriate item for each of the definitions listed below.
-relies on the quality of the subjective judgment of the analyst

Accepted Answer

A) high-low method 
B) scatter-graph method 
C) method of least squares 
A) high-low method 
B) scatter-graph method 
C) method of least squares

Question 12

Select the appropriate type of cost for each of the definitions below.
-has an increased fixed component at specific intervals

Accepted Answer

A) variable 
B) fixed 
C) mixed 
D) step 
A) variable 
B) fixed 
C) mixed 
D) step

Question 13

Select the appropriate item for each of the definitions listed below.
-a description of how a cost changes when the level of output changes

Accepted Answer

A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost 
A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost

Question 14

$10,630.80
62. 8.83
63. 99%

Accepted Answer

A) variable rate 
B) fixed cost 
C) variable cost 
D) cost equation 
E) coefficient of determination 
A) variable rate 
B) fixed cost 
C) variable cost 
D) cost equation 
E) coefficient of determination

Question 15

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

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 16

Total variable costs = Variable rate * amount of output.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 18

Figure 3-7.Margola Company produces hand-held calculators. The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months were collected.   Coefficients shown by a regression program are:
  
-Refer to Figure 3-7. Using the results of regression, calculate the variable rate of maintenance cost.

Accepted Answer

A)  $1,150 per machine hour 
B)  $12.74 per machine hour 
C)  $9.06 per machine hour 
D)  $12.14 per machine hour 
A)  $1,150 per machine hour 
B)  $12.74 per machine hour 
C)  $9.06 per machine hour 
D)  $12.14 per machine hour

Question 19

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. Calculate the total variable utility cost for the month of April.

Accepted Answer

A)  $1,200.00 
B)  $7,477.50 
C)  $6,277.50 
D)  $5,077.50 
A)  $1,200.00 
B)  $7,477.50 
C)  $6,277.50 
D)  $5,077.50

Question 20

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

Select the appropriate type of fixed cost for each cost listed below. -cost of executive training seminars

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

Select the appropriate item for each of the definitions listed below. -results in the best-fitting line through a set of data points

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -depreciation on robotic equipment

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

Select the appropriate item for each of the definitions listed below. -it corresponds to the fixed cost

When a mixed cost is graphed the slope of the line equals

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 slope?

Which of the following would be a variable cost for a dentist's office?

Select the appropriate item for each of the definitions listed below. -relies on the quality of the subjective judgment of the analyst

Select the appropriate type of cost for each of the definitions below. -has an increased fixed component at specific intervals

Select the appropriate item for each of the definitions listed below. -a description of how a cost changes when the level of output changes

$10,630.80 62. 8.83 63. 99%

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

Total variable costs = Variable rate * amount of output.

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

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. Calculate the total variable utility cost for the month of April.

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

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

Select the appropriate type of fixed cost for each cost listed below. -cost of executive training seminars

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

Select the appropriate item for each of the definitions listed below. -results in the best-fitting line through a set of data points

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -depreciation on robotic equipment

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

Select the appropriate item for each of the definitions listed below. -it corresponds to the fixed cost

When a mixed cost is graphed the slope of the line equals

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 slope?

Which of the following would be a variable cost for a dentist's office?

Select the appropriate item for each of the definitions listed below. -relies on the quality of the subjective judgment of the analyst

Select the appropriate type of cost for each of the definitions below. -has an increased fixed component at specific intervals

Select the appropriate item for each of the definitions listed below. -a description of how a cost changes when the level of output changes

$10,630.80 62. 8.83 63. 99%

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

Total variable costs = Variable rate * amount of output.

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

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. Calculate the total variable utility cost for the month of April.

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

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