Sunny's Frozen Treats is a snow cone stand near the local park.To plan for the future,Sunny wants to determine his cost behavior patterns.He has the following information available about his operating costs and the number of snow cones served. \[\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of snow cones } & \text { Total operating costs } \\ \hline \text { January } & 7,200 & \$ 4,700 \\ \hline \text { February } & 8,000 & \$ 5,800 \\ \hline \text { March } & 6,000 & \$ 4,600 \\ \hline \text { April } & 6,600 & \$ 4,500 \\ \hline \text { May } & 7,700 & \$ 5,100 \\ \hline \text { June } & 7,250 & \$ 5,000 \\ \hline \end{array}\] -Using the high-low method,the fixed costs for a month are:

A) $ 1,000. B) $10,400. C) $ 1,200. D) $ 4,800. A) $ 1,000. B) $10,400. C) $ 1,200. D) $ 4,800.

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. \[\begin{array} { | l | l | l | l | } \hline \text { Account } & \text { Amount } & \text { Account } & \text { Amount } \\ \hline \text { Membership revenue } & \$ 125,000 & \text { Personal trainer wages expense } & ? \\ \hline \text { Persunal training revenue } & \$ 60,000 & \text { Space rental expense } & \$ 12,000 \\ \hline \text { Product sales } & \$ 65,000 & \text { Straight line depreciation expense } & \$ 6,000 \\ \hline \text { Cost of product sold } & \$ 40,000 & \text { Rental insurance expense } & \$ 3,000 \\ \hline \text { Frant desk staff wages expense } & \$ 12,000 & & \\ \hline \end{array}\] -If a traditional income statement is prepared for the year,what is operating income?

A) $147,000 B) $180,000 C) $227,000 D) $250,000 A) $147,000 B) $180,000 C) $227,000 D) $250,000

Exam 6: Cost Behavior

Using account analysis,what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours,$85 for 201- 400 kilowatt hours,and $135 + or - for 401-600 kilowatt hours?

(Multiple Choice)

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Question 81

Total mixed cost graphs intersect the y-axis at the level of fixed costs.

(True/False)

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Question 82

Sunny's Frozen Treats is a snow cone stand near the local park.To plan for the future,Sunny wants to determine his cost behavior patterns.He has the following information available about his operating costs and the number of snow cones served. Month Number of snow cones Total operating costs January 7,200 \ 4,700 February 8,000 \ 5,800 March 6,000 \ 4,600 April 6,600 \ 4,500 May 7,700 \ 5,100 June 7,250 \ 5,000 -Using the high-low method,the fixed costs for a month are:

(Multiple Choice)

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Question 83

Cost behavior can be mathematically expressed using equations.

(True/False)

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Question 84

An expense such as advertising could be considered a discretionary fixed cost.

(True/False)

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Question 85

Companies can estimate separate cost equations for each of their expenses,or for all of their expenses lumped together

(True/False)

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Question 86

What are three methods used to estimate cost behavior? What are the advantages and disadvantages of each method?

(Essay)

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Question 87

Within the relevant range,which of the following statements is TRUE with respect to fixed costs per unit?

(Multiple Choice)

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Question 88

A high R-square statistic of +1 indicates a perfect level of correlation between costs and the cost driver.

(True/False)

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Question 89

The intercept-coefficient in regression analysis yields the fixed cost portion of the total costs.

(True/False)

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Question 90

When using the high-low method,the "high" point should be chosen as the data point with the highest volume (not the highest cost).

(True/False)

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Question 91

Regression analysis uses all data points,not just the highest and lowest volume data points.

(True/False)

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Question 92

A regression equation's fixed cost component is represented by the__________ on the regression analysis output.

(Multiple Choice)

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Question 93

In the equation y = vx + f,the f represents the fixed costs.

(True/False)

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Question 94

Vanco Industries wanted to determine the relationship between its monthly operating costs and a potential cost driver,machine hours.The output of a regression analysis showed the following information (Note: only a portion of the regression analysis results is presented here.) -What is the fixed cost (round to nearest cent)?

(Multiple Choice)

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Question 95

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 operating income?

(Multiple Choice)

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Question 96

When graphing total fixed costs,the fixed cost per unit is the slope of the fixed cost line.

(True/False)

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Question 97

Which of the following cost behaviors cannot be accurately represented by a single straight line?

(Multiple Choice)

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Question 98

Management has little or no control over:

(Multiple Choice)

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Question 99

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 266

Using account analysis,what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours,$85 for 201- 400 kilowatt hours,and $135 + or - for 401-600 kilowatt hours?

Total mixed cost graphs intersect the y-axis at the level of fixed costs.

Cost behavior can be mathematically expressed using equations.

An expense such as advertising could be considered a discretionary fixed cost.

Companies can estimate separate cost equations for each of their expenses,or for all of their expenses lumped together

What are three methods used to estimate cost behavior? What are the advantages and disadvantages of each method?

Within the relevant range,which of the following statements is TRUE with respect to fixed costs per unit?

A high R-square statistic of +1 indicates a perfect level of correlation between costs and the cost driver.

The intercept-coefficient in regression analysis yields the fixed cost portion of the total costs.

When using the high-low method,the "high" point should be chosen as the data point with the highest volume (not the highest cost).

Regression analysis uses all data points,not just the highest and lowest volume data points.

A regression equation's fixed cost component is represented by the__________ on the regression analysis output.

In the equation y = vx + f,the f represents the fixed costs.

When graphing total fixed costs,the fixed cost per unit is the slope of the fixed cost line.

Which of the following cost behaviors cannot be accurately represented by a single straight line?

Management has little or no control over:

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

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