Exam 10: Analysis of Cost Behaviour

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

Regression analysis differs from high-low analysis in that regression analysis

A corporation can measure its quality performance by using financial or nonfinancial measures of quality.Discuss the merits of each method and whether the use of one precludes the use of the other.

Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company. Required: Using the high-low method determine the forecasted cost for July if the number of units produced is expected to be 5,000.

Which of the following is an equation of a variable cost function?

Customer response time is the time between when a company first markets a new product, and when sales exceed supplies on hand (test inventory).

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15.John Ballard is the only worker and he works a maximum of eight hours a day, five days a week.Each order is one window, and each window takes 26 minutes to install.What is the average waiting time in minutes?

Understanding the drivers of costs is crucially important for managing costs.Provide two causes that create a cause-and-effect relationship between a cost driver and a cost.

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. -Which cost estimation method is being used by Penny's TV and Appliance Store?

The average waiting time is the average amount of time an order will wait at the company's shipping office before it is sent to the customer.

Use the information below to answer the following question(s).Presented below is the production data for the last six months of the year for the mixed costs incurred by Wagner Company. -Using the high-low method, the cost function would be stated as

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 -Scrap

A measurement of market share is considered a financial measure of customer satisfaction in a balanced scorecard.

There is a homogeneous relationship between the individual cost items in the dependent variable pool and the cost driver when each activity whose costs are included in the dependent variable has the same cost driver.

Munir Hassan, controller, gathered data on overhead costs and direct labour-hours over the past 12 months.List and discuss the different approaches Munir can use to estimate a cost function for overhead costs using direct labour-hours as the cost driver.

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 -Rework direct manufacturing labour and overhead

Write a linear cost function equation for each of the following conditions.Use y for estimated costs and X for activity of the cost driver.a.Direct materials cost is $1.50 per kilogram. b.Direct labor cost is $33.50 per hour. c.Auto rental has a fixed fee of $150.00 per day plus $1.00 per kilometre driven.

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 -Rework direct manufacturing labour and overhead

When new products are introduced, learning-curve effects can have a major influence on production scheduling.

A better database for estimating cost functions has the following characteristics.