Question 1

The method of least squares

Accepted Answer

A)  is a way to find the "best fitting" line through a set of data points. 
B)  is a statistical way of separating a mixed cost. 
C)  always produces the same cost formula when used on the same data set. 
D)  all of these are correct 
A)  is a way to find the "best fitting" line through a set of data points. 
B)  is a statistical way of separating a mixed cost. 
C)  always produces the same cost formula when used on the same data set. 
D)  all of these are correct

Question 2

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

Accepted Answer

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

Question 3

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. Using the cost formula for the equipment maintenance cost, what is the predicted cost of equipment maintenance for April assuming that 5,000 machine hours will be incurred in April?

Accepted Answer

A)  $32,000 
B)  $125,000 
C)  $157,000 
D)  None of these are correct. 
A)  $32,000 
B)  $125,000 
C)  $157,000 
D)  None of these are correct.

Question 4

Select the appropriate type of cost for each of the definitions below.
-remains the same in total within the relevant range

Accepted Answer

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

Question 5

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

Accepted Answer

coefficien

Question 6

If output decreases

Accepted Answer

A)  total fixed costs will remain the same. 
B)  total variable costs will increase. 
C)  per-unit fixed costs will decrease. 
D)  All of these are correct. 
A)  total fixed costs will remain the same. 
B)  total variable costs will increase. 
C)  per-unit fixed costs will decrease. 
D)  All of these are correct.

Question 7

NOT: 2 min.Figure 3-8.Martin Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.   Coefficients shown by a regression program are:
  
-Refer to Figure 3-8. Using the results of regression, the cost formula for electricity cost was

Accepted Answer

A)  $9.48 * machine hours 
B)  $2,255 * machine hours 
C)  $2,255 + ($9.48 * machine hours) 
D)  None of these are correct. 
A)  $9.48 * machine hours 
B)  $2,255 * machine hours 
C)  $2,255 + ($9.48 * machine hours) 
D)  None of these are correct.

Question 8

Select the appropriate cost behavior for each of the costs listed below.
-factory insurance

Accepted Answer

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

Question 9

Which of the following would probably be a discretionary fixed cost for a law firm?

Accepted Answer

A)  salary of receptionist 
B)  advertising 
C)  depreciation on furniture and equipment 
D)  cost of legal forms 
A)  salary of receptionist 
B)  advertising 
C)  depreciation on furniture and equipment 
D)  cost of legal forms

Question 10

Arcadia Company incurred the following costs and machine hours during the first three months of the current year. Assume that the driver for all costs is machine hours.
   Required:

Accepted Answer

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

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

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 15

cost = intercept + X variable 1 * driver

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 16

"Outliers" are points that seem to fit the general pattern of behavior.

Accepted Answer

A) True 
 B)False

Question 17

Graber and Johnson, Attorney's at Law, recently opened a law practice in the Northwest. Their goal is to generate a monthly net income of $10,000. They have initially set their billing rate at $150 per hour. Their billable hours in the first month of operations (January) were 150 and in the second month of operations (February), 175 billable hours. The costs incurred at these levels for January and February are given below.
   Required:

Accepted Answer

The answer of Graber and Johnson, Attorney's at Law, recently...

Question 18

Figure 3-2.  
-Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

Accepted Answer

A)  $44,000 
B)  $88,000 
C)  $22,000 
D)  $132,000 
A)  $44,000 
B)  $88,000 
C)  $22,000 
D)  $132,000

Question 19

Per-unit variable costs

Accepted Answer

A)  can be misleading and lead to poor decisions. 
B)  increase as output increases. 
C)  decrease as output decreases. 
D)  remain constant within the relevant range. 
A)  can be misleading and lead to poor decisions. 
B)  increase as output increases. 
C)  decrease as output decreases. 
D)  remain constant within the relevant range.

Question 20

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

Accepted Answer

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

The method of least squares

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

Select the appropriate type of cost for each of the definitions below. -remains the same in total within the relevant range

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

If output decreases

Select the appropriate cost behavior for each of the costs listed below. -factory insurance

Which of the following would probably be a discretionary fixed cost for a law firm?

Arcadia Company incurred the following costs and machine hours during the first three months of the current year. Assume that the driver for all costs is machine hours. Required:

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

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

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

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?

cost = intercept + X variable 1 * driver

"Outliers" are points that seem to fit the general pattern of behavior.

Figure 3-2. -Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

Per-unit variable costs

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

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

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

Select the appropriate type of cost for each of the definitions below. -remains the same in total within the relevant range

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

If output decreases

Select the appropriate cost behavior for each of the costs listed below. -factory insurance

Which of the following would probably be a discretionary fixed cost for a law firm?

Arcadia Company incurred the following costs and machine hours during the first three months of the current year. Assume that the driver for all costs is machine hours. Required:

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

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

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

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?

cost = intercept + X variable 1 * driver

"Outliers" are points that seem to fit the general pattern of behavior.

Figure 3-2. -Refer to Figure 3-2. What should the total materials cost be at a production level of 220,000 toys?

Per-unit variable costs

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

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