Question 1

Simple regression differs from multiple regression in that

Accepted Answer

A) multiple regression uses all available data to estimate the cost function whereas simple regression only uses simple data. 
B) simple regression is limited to the use of only the outcome variables and multiple regression can use both outcome and predictor variables. 
C) simple regression uses only one predictor variable and multiple regression uses more than one predictor variable. 
D) simple regression uses only one outcome variable and multiple regression uses more than one outcome variable. 
E) the lease squares technique cannot be used for simple regression whereas it can be used for multiple regression. 
A) multiple regression uses all available data to estimate the cost function whereas simple regression only uses simple data. 
B) simple regression is limited to the use of only the outcome variables and multiple regression can use both outcome and predictor variables. 
C) simple regression uses only one predictor variable and multiple regression uses more than one predictor variable. 
D) simple regression uses only one outcome variable and multiple regression uses more than one outcome variable. 
E) the lease squares technique cannot be used for simple regression whereas it can be used for multiple regression.

Question 2

Wimmer's Storage ran its freezer in February, a slow month, for 360 hours for a total cost of $57,600.In July, a peak month, the freezer ran for 720 hours for a total cost of $82,080.Required:
a.Using the high-low method, determine the overhead cost equation for the department if hours of freezer use are used as the cost driver?
b.What is the estimated total cost at an operating level of 500 hours?

Accepted Answer

The answer of Wimmer's Storage ran its freezer in February,...

Question 3

Each time Maiertree Care hires a new employee it must wait for some period of time before the employee can meet production standards.Management is unsure of the learning curve in its operations but it knows the first job by a new employee averages 60 hours and the second job averages 48 hours.Assume all jobs to be equal in size.Required:
a.What is the learning curve percentage, assuming the cumulative average-time method?
b.What is the time for a new employee to build 16 units with this learning curve using the cumulative average-time method? Assume the rate of learning factor is -0.1520.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& b.Y = p

Question 4

Answer the following question(s)using the information below.Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations.  
-What are the estimated total costs if Jenny's expects to sell 3,000 units next year?

Accepted Answer

A) $86,700 
B) $98,700 
C) $76,700 
D) $88,700 
E) $84,240 
A) $86,700 
B) $98,700 
C) $76,700 
D) $88,700 
E) $84,240

Question 5

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Utilities in inspection area of plant

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 6

Define cost of quality (COQ), list the four categories, and provide an example of each.

Accepted Answer

The cost of quality (COQ)are costs incur

Question 7

List and briefly describe the five steps in estimating a cost function using quantitative analysis.

Accepted Answer

Step 1: Choose the dependent variable.Ch

Question 8

Use the information below to answer the following question(s).Dylan Products has a budget of $1,200,000 in 2018 for prevention costs.If it decides to automate a portion of its prevention activities, it will save $90,000 in variable costs.The new method will require $40,000 in training costs and $150,000 in annual equipment costs.Management is willing to adjust the budget for an amount up to the cost of the new equipment.The budgeted production level is 210,000 units.Appraisal costs for the year are budgeted at $500,000.The new prevention procedures will save appraisal costs of $50,000.Internal failure costs average $20 per failed unit of finished goods.The internal failure rate is expected to be 4% of all completed items.The proposed changes will cut the internal failure rate by one-half.Internal failure units are destroyed.External failure costs average $48 per failed unit.The company's average external failures average 2.5% of units sold.The new proposal will reduce this rate to 1%.Assume all units produced are sold and there are no ending inventories.
-How much do external failure costs change if all the changes are as the new prevention procedures anticipated? Assume all units produced are sold and there are no ending inventories.

Accepted Answer

A) $126,000 decrease 
B) $156,400 decrease 
C) $100,800 decrease 
D) $158,900 decrease 
E) $151,200 decrease 
A) $126,000 decrease 
B) $156,400 decrease 
C) $100,800 decrease 
D) $158,900 decrease 
E) $151,200 decrease

Question 9

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.  
-What was the Penny's TV variable cost per unit sold?

Accepted Answer

A) $18 
B) $235 
C) $339 
D) $200 
E) $218 
A) $18 
B) $235 
C) $339 
D) $200 
E) $218

Question 10

Correctly identifying the cost driver and separating fixed from variable costs are important inputs for many management decisions.

Accepted Answer

A) True 
 B)False

Question 11

Use the information below to answer the following question(s).The Monroe Company uses the high-low method to estimate the cost function.The information for the current year is provided below.  
-What is Monroe Company's slope coefficient per machine hour?

Accepted Answer

A) $26.91 
B) $18.00 
C) $16.67 
D) $10.00 
E) $8.00 
A) $26.91 
B) $18.00 
C) $16.67 
D) $10.00 
E) $8.00

Question 12

Costs of quality include all of the following EXCEPT

Accepted Answer

A) correction costs. 
B) external failure costs. 
C) internal failure costs. 
D) prevention costs. 
E) appraisal costs. 
A) correction costs. 
B) external failure costs. 
C) internal failure costs. 
D) prevention costs. 
E) appraisal costs.

Question 13

Two important drivers of time are limited capacity and bottlenecks.

Accepted Answer

A) True 
 B)False

Question 14

Quick Shop Printing has two workstations, cutting and pasting.The cutting station is limited by the speed of operating the cutting machine.Pasting is limited by the speed of the workers.Pasting normally waits on work from cutting.Each department currently works an eight-hour day.The company is considering having cutting begin work two hours earlier than pasting each day, the two departments would then finish their work at the same time.Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units.All units produced can be sold even though the change increases inventory stock by 10 percent from 200 units.The cost of operating the cutting department two more hours each day is $800.The contribution margin of the finished products is $3 each.Inventory carrying costs are $0.20 per unit per day.What is the change in the daily contribution margin if the change is made?

Accepted Answer

A) $(396) 
B) $(564) 
C) $240 
D) $236 
E) $(604) 
A) $(396) 
B) $(564) 
C) $240 
D) $236 
E) $(604)

Question 15

Use the information below to answer the following question(s).The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.  
-What is the estimated total cost at an operating level of 8,000 hours?

Accepted Answer

A) $39,115 
B) $36,670 
C) $44,711 
D) $43,470 
E) $37,125 
A) $39,115 
B) $36,670 
C) $44,711 
D) $43,470 
E) $37,125

Question 16

The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.   Required:
Using the high-low method determine the forecasted cost for July if the number of hours used is expected to be 3,200.

Accepted Answer

b = ($44,160 - $24,400)/(3,900

Question 17

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.  
-What were total fixed costs at Penny's TV for the current year?

Accepted Answer

A) $242,000 
B) $436,000 
C) $678,000 
D) $227,000 
E) $278,000 
A) $242,000 
B) $436,000 
C) $678,000 
D) $227,000 
E) $278,000

Question 18

Time-series data analysis includes

Accepted Answer

A) using a variety of time periods to measure the independent variable. 
B) using the highest and lowest observation. 
C) observing different entities during the same time period. 
D) comparing information in different cost pools. 
E) analyzing cost drivers at different levels of production. 
A) using a variety of time periods to measure the independent variable. 
B) using the highest and lowest observation. 
C) observing different entities during the same time period. 
D) comparing information in different cost pools. 
E) analyzing cost drivers at different levels of production.

Question 19

Newton Company used linear regression analysis to obtain the following output:
       a.What is the total fixed cost?
b.What is the variable cost per employee?
c.Prepare the linear cost function.
d.What is the coefficient of determination? Comment on the goodness of fit.

Accepted Answer

a.The constant or intercept is the total

Question 20

The Door Company manufactures doors.Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.
A)Appraisal
B)Internal failure
C)Prevention
D)External failure
-Depreciation of test equipment

Accepted Answer

The answer of The Door Company manufactures doors.Classify each of...

Simple regression differs from multiple regression in that

Answer the following question(s)using the information below.Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. -What are the estimated total costs if Jenny's expects to sell 3,000 units next year?

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Utilities in inspection area of plant

Define cost of quality (COQ), list the four categories, and provide an example of each.

List and briefly describe the five steps in estimating a cost function using quantitative analysis.

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. -What was the Penny's TV variable cost per unit sold?

Correctly identifying the cost driver and separating fixed from variable costs are important inputs for many management decisions.

Use the information below to answer the following question(s).The Monroe Company uses the high-low method to estimate the cost function.The information for the current year is provided below. -What is Monroe Company's slope coefficient per machine hour?

Costs of quality include all of the following EXCEPT

Two important drivers of time are limited capacity and bottlenecks.

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. -What were total fixed costs at Penny's TV for the current year?

Time-series data analysis includes

Newton Company used linear regression analysis to obtain the following output: a.What is the total fixed cost? b.What is the variable cost per employee? c.Prepare the linear cost function. d.What is the coefficient of determination? Comment on the goodness of fit.

The Door Company manufactures doors.Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. A)Appraisal B)Internal failure C)Prevention D)External failure -Depreciation of test equipment

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 10: Analysis of Cost Behaviour

Simple regression differs from multiple regression in that

Answer the following question(s)using the information below.Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. -What are the estimated total costs if Jenny's expects to sell 3,000 units next year?

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Utilities in inspection area of plant

Define cost of quality (COQ), list the four categories, and provide an example of each.

List and briefly describe the five steps in estimating a cost function using quantitative analysis.

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. -What was the Penny's TV variable cost per unit sold?

Correctly identifying the cost driver and separating fixed from variable costs are important inputs for many management decisions.

Use the information below to answer the following question(s).The Monroe Company uses the high-low method to estimate the cost function.The information for the current year is provided below. -What is Monroe Company's slope coefficient per machine hour?

Costs of quality include all of the following EXCEPT

Two important drivers of time are limited capacity and bottlenecks.

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. -What were total fixed costs at Penny's TV for the current year?

Time-series data analysis includes

Newton Company used linear regression analysis to obtain the following output: a.What is the total fixed cost? b.What is the variable cost per employee? c.Prepare the linear cost function. d.What is the coefficient of determination? Comment on the goodness of fit.

The Door Company manufactures doors.Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. A)Appraisal B)Internal failure C)Prevention D)External failure -Depreciation of test equipment

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters