Exam 3: Cost Behavior

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 six months were collected. Required:

Select the appropriate cost behavior for each of the costs listed below. -real estate taxes

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

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

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of rework

The scatter-graph method

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 utility cost for the month of April.

When a mixed cost is graphed the Y-intercept corresponds to the

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -factory supervisor's salary

Andover Company makes weather balloons. The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred by the factory. Data for the past six months were collected. Required:

Select the appropriate cost behavior for each of the costs listed below. -controller's salary

Figure 3-10.The following cost formula was developed using the monthly data for an accounting firm.Total cost = $87,100 + ($210 * number of tax returns) -Refer to Figure 3-10. The term $87,100

The fabric used to manufacture curtains is an example of a ____________ cost.

Which of the following is an example of a discretionary fixed cost?

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 fixed cost of leasing

Which of the following would probably be a variable cost at a college?

An advantage of the high-low method is that it is ___________.

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

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of transporting cars to dealerships

Determining cost behavior is not essential to planning, controlling, and decision making.