Exam 6: Cost Behavior

Mixed costs are part variable and part fixed.

Using account analysis,what type of cost is the price of gasoline when your car gets 20 miles per gallon and each gallon costs $3.10?

The equation for total fixed costs is:

If inventory has not increased or decreased,but has stayed the same,operating income will be higher under variable costing than it is under absorption costing.

If a regression analysis shows an R factor of 0.13,it is safe to assume:

Harbor Manufacturing is trying to predict the cost associated with producing its anchors.At a production level of 4,000 anchors,Harbor Manufacturing's average cost per anchor is $50.00.If $20,000 of the costs are fixed,and the plant manager uses the cost equation to predict total costs,her forecast for 5,000 anchors will be:

On a contribution margin income statement,all variable costs are listed:

Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver.The output of regression analysis showed the following information: Intercept Coefficient = 89,620 X Variable 1 Coefficient = 62.53 R-square = 0.9852 - What is the company's monthly cost equation?

The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The variable cost per unit is:

If a manager sees a potential outlier in the data,he or she should first determine whether the data is correct.

Flavio's Fitness Club provides monthly memberships as well as personal training sessions.The personal trainers earn 50% of the revenue for all personal training sessions.The Fitness Club also sells nutrition products.Flavio's general ledger accounts indicate the following for the year.The front desk staff wages expense remains the same throughout the year. Account Amount Account Amount Membership revenue \ 125,000 Personal trainer wages expense ? Persunal training revenue \ 60,000 Space rental expense \ 12,000 Product sales \ 65,000 Straight line depreciation expense \ 6,000 Cost of product sold \ 40,000 Rental insurance expense \ 3,000 Frant desk staff wages expense \ 12,000 -If a traditional income statement is prepared for the year,what is Gross Profit?

On a traditional income statement,sales revenue less cost of goods sold equals:

Revenue less cost of goods sold equals contribution margin.

Pedro Company has total fixed costs of $480,000.Total fixed and variable costs are $600,000 at a production level of 150,000 units.The variable cost per unit at 300,000 units is:

Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table. Month Maintenance cost Machine hours January \ 9,500 15,800 February \ 9,860 17,300 March \ 8,600 14,500 April \ 8,840 16,100 May \ 8,600 17,100 June \ 8,100 15,500 - Using the high low method,what would the variable maintenance cost per machine hour be?

Traditional income statements provide managers with a great deal of cost behavior information.

Which of the following statements is TRUE with respect to total fixed costs?

A "perfect" straight line would render an R-square value of zero.

Which of the following statements is TRUE with respect to variable costs per unit?

Total mixed costs can be expressed as a combination of the variable and fixed cost equations.