The Rumler Company used regression analysis to predict the annual cost of utilities.The results were as follows: $\begin{array}{ll}&\text { Utilities Cost }\\ &\text { Explained by Direct Labor Hours }\\ \text { Constant } & 4,500 \\ \text { Standard error of } Y \text { estimate } & 595 \\ \text { R-Squared } & 0.87 \\ \text { No. of observations } & 30 \\ \text { Degrees of freedom } & 28 \\ \text { X Coefficient } & 5.04 \\ \text { Standard error fofficient } & 0.92 \end{array}$ The total fixed cost is ________.

A) $5.04 times number of direct labor hours B) $595 C) $4,500 D) none of the above A) $5.04 times number of direct labor hours B) $595 C) $4,500 D) none of the above

The following data has been assembled for Mildred Company.Use the high-low method. $\begin{array}{lll}\text { Month }&\text { Cost }&\text { Hours }\\ \text { January } & \$ 18,000 & 2,000 \\ \text { February } & \$ 39,000 & 3,500 \\ \text { March } & \$ 39,280 & 3,450 \\ \text { April } & \$ 43,400 & 3,200 \\ \text { May } & \$ 40,000 & 4,000 \end{array}$ The variable cost per hour is ________.

A) $9.00 B) $10.00 C) $10.40 D) $11.00 A) $9.00 B) $10.00 C) $10.40 D) $11.00

Presented below is the production data for six months of the year showing the mixed costs incurred by Kennedy Company. $\begin{array}{lll}\text { Month }&\text { Cost }&\text { Units }\\ \text { July } & \$ 6,000 & 4,000 \\ \text { August } & \$ 10,250 & 6,500 \\ \text { September } & \$ 10,500 & 8,000 \\ \text { October } & \$ 12,700 & 10,500 \\ \text { November } & \$ 14,000 & 12,000 \\ \text { December } & \$ 10,850 & 9,000 \end{array}$ Kennedy Company uses the high-low method to analyze mixed costs.The total fixed cost is ________.

A) $2,000 B) $4,500 C) $10,417 D) $10,500 A) $2,000 B) $4,500 C) $10,417 D) $10,500

The Anthony Company used regression analysis to predict the annual cost of utilities.The results were as follows: $\begin{array}{ll}&\text { Utilities Cost }\\ &\text { Explained by Direct Labor Hours }\\ \text { Constant } & 4,500 \\ \text { Standard error of } Y \text { estimate } & 595 \\ \text { R-Squared } & 0.87 \\ \text { No. of observations } & 30 \\ \text { Degrees of freedom } & 28 \\ \text { X Coefficient } & 5.02 \\ \text { Standarderror of coefficient } & 0.92 \end{array}$ The variable cost per direct labor hour is ________.

A) $0.87 B) $0.92 C) $5.02 D) $4,500 A) $0.87 B) $0.92 C) $5.02 D) $4,500

Noonan Company used regression analysis to predict the annual cost of indirect materials.The results were as follows: $\begin{array}{ll}&\text { Indirect Materials Cost }\\ &\text { Explained by Units Produced }\\ \text { Constant } & 4,200 \\ \text { Standard error of } Y \text { estimate } & 2,300 \\ \text { R-Squared } & 0.84 \\ \text { No. of observations } & 22 \\ \text { Degrees of freedom } & 20 \\ \text { X Coefficient } & 2.30 \\ \text { Standarderror of coefficient } & 2.70 \end{array}$ The variable cost per unit of product is ________.

A) $0.84 B) $1.00 C) $2.30 D) $2.70 A) $0.84 B) $1.00 C) $2.30 D) $2.70

Presented below is the production data for six months of the year showing the mixed costs incurred by Madeline Company. $\begin{array}{lll}\text { Month }&\text { Cost }&\text { Units }\\ \text { July } & \$ 6,000 & 4,000 \\ \text { August } & \$ 11,250 & 9,500 \\ \text { September } & \$ 11,500 & 9,000 \\ \text { October } & \$ 11,700 & 10,500 \\ \text { November } & \$ 14,000 & 12,000 \\ \text { December } & \$ 12,850 & 10,000 \end{array}$ Madeline Company uses the high-low method to analyze mixed costs.The predicted total cost at an operating level of 10,000 units is ________.

A) $11,725 B) $11,800 C) $12,000 D) $12,850 A) $11,725 B) $11,800 C) $12,000 D) $12,850

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Eunice Company. $\begin{array}{lll}\text { Month }&\text { Cost }&\text { Units }\\ \text { January } & \$ 7,500 & 4,000 \\ \text { February } & 13,000 & 7,500 \\ \text { March } & 11,500 & 9,000 \\ \text { April } & 11,700 & 11,500 \\ \text { May } & 13,500 & 12,000 \\ \text { June } & 11,850 & 6,000 \end{array}$ Eunice Company uses the high-low method to analyze mixed costs.The variable cost per unit is ________.

A) $0.625 B) $0.75 C) $1.25 D) $1.31 A) $0.625 B) $0.75 C) $1.25 D) $1.31

Exam 3: Measurement of Cost Behavior

The Rumler Company used regression analysis to predict the annual cost of utilities.The results were as follows: Utilities Cost Explained by Direct Labor Hours Constant 4,500 Standard error of Y estimate 595 R-Squared 0.87 No. of observations 30 Degrees of freedom 28 X Coefficient 5.04 Standard error fofficient 0.92 The total fixed cost is ________.

(Multiple Choice)

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Question 101

The following data has been assembled for Mildred Company.Use the high-low method. Month Cost Hours January \ 18,000 2,000 February \ 39,000 3,500 March \ 39,280 3,450 April \ 43,400 3,200 May \ 40,000 4,000 The variable cost per hour is ________.

(Multiple Choice)

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Question 102

Presented below is the production data for six months of the year showing the mixed costs incurred by Kennedy Company. Month Cost Units July \ 6,000 4,000 August \ 10,250 6,500 September \ 10,500 8,000 October \ 12,700 10,500 November \ 14,000 12,000 December \ 10,850 9,000 Kennedy Company uses the high-low method to analyze mixed costs.The total fixed cost is ________.

(Multiple Choice)

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Question 103

Which statement regarding fixed costs is TRUE?

(Multiple Choice)

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Question 104

The Anthony Company used regression analysis to predict the annual cost of utilities.The results were as follows: Utilities Cost Explained by Direct Labor Hours Constant 4,500 Standard error of Y estimate 595 R-Squared 0.87 No. of observations 30 Degrees of freedom 28 X Coefficient 5.02 Standarderror of coefficient 0.92 The variable cost per direct labor hour is ________.

(Multiple Choice)

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Question 105

When examining the output from regression analysis,the goodness of fit measure is labeled ________ by most computer programs.

(Multiple Choice)

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Question 106

When using the visual-fit method to estimate a cost function,the variable cost per unit of the cost driver is equal to the ________.

(Multiple Choice)

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Question 107

Noonan Company used regression analysis to predict the annual cost of indirect materials.The results were as follows: Indirect Materials Cost Explained by Units Produced Constant 4,200 Standard error of Y estimate 2,300 R-Squared 0.84 No. of observations 22 Degrees of freedom 20 X Coefficient 2.30 Standarderror of coefficient 2.70 The variable cost per unit of product is ________.

(Multiple Choice)

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Question 108

Which methods to approximate cost functions rely on a logical analysis of the cost environment instead of an explicit analysis of prior cost data?

(Multiple Choice)

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Question 109

The process of identifying appropriate cost drivers and their effects on the costs of making a product or providing a service is called ________.

(Multiple Choice)

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Question 110

Managers cannot eliminate discretionary fixed costs.

(True/False)

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Question 111

Committed fixed costs usually arise from the possession of facilities,equipment and a basic organizational structure.

(True/False)

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Question 112

Sheboygan Motel's cost function is given as: Y = $120,000 + $2.50X Where: Y = annual custodial cost X = number of guest-days of occupancy In the current year,Sheboygan Motel has 8,000 guest days.In the next year,Sheboygan Motel expects an occupancy level of 10,000 guest days.(All costs next year will remain in the same relevant range as the current year.)What is the expected total custodial cost for next year?

(Multiple Choice)

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Question 113

In relation to a cost function,the term reliability means ________.

(Multiple Choice)

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Question 114

Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.

(Multiple Choice)

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Question 115

Presented below is the production data for six months of the year showing the mixed costs incurred by Madeline Company. Month Cost Units July \ 6,000 4,000 August \ 11,250 9,500 September \ 11,500 9,000 October \ 11,700 10,500 November \ 14,000 12,000 December \ 12,850 10,000 Madeline Company uses the high-low method to analyze mixed costs.The predicted total cost at an operating level of 10,000 units is ________.

(Multiple Choice)

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Question 116

In a mixed-cost linear function with one cost driver,the intercept is the and the slope is the .

(Multiple Choice)

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Question 117

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Eunice Company. Month Cost Units January \ 7,500 4,000 February 13,000 7,500 March 11,500 9,000 April 11,700 11,500 May 13,500 12,000 June 11,850 6,000 Eunice Company uses the high-low method to analyze mixed costs.The variable cost per unit is ________.

(Multiple Choice)

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Question 118

A company has identified the appropriate cost driver for a resource cost.To estimate or approximate the cost function,the company manager has a broad selection of methods that will NOT include ________.

(Multiple Choice)

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Question 119

The fixed costs required to achieve a desired level of production or to provide a desired level of service,while maintaining product or service attributes,are ________.

(Multiple Choice)

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Question 120

The following data has been assembled for Mildred Company.Use the high-low method. Month Cost Hours January \ 18,000 2,000 February \ 39,000 3,500 March \ 39,280 3,450 April \ 43,400 3,200 May \ 40,000 4,000 The variable cost per hour is ________.

Which statement regarding fixed costs is TRUE?

When examining the output from regression analysis,the goodness of fit measure is labeled ________ by most computer programs.

When using the visual-fit method to estimate a cost function,the variable cost per unit of the cost driver is equal to the ________.

Which methods to approximate cost functions rely on a logical analysis of the cost environment instead of an explicit analysis of prior cost data?

The process of identifying appropriate cost drivers and their effects on the costs of making a product or providing a service is called ________.

Managers cannot eliminate discretionary fixed costs.

Committed fixed costs usually arise from the possession of facilities,equipment and a basic organizational structure.

In relation to a cost function,the term reliability means ________.

Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.

In a mixed-cost linear function with one cost driver,the intercept is the and the slope is the .

A company has identified the appropriate cost driver for a resource cost.To estimate or approximate the cost function,the company manager has a broad selection of methods that will NOT include ________.

The fixed costs required to achieve a desired level of production or to provide a desired level of service,while maintaining product or service attributes,are ________.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 3: Measurement of Cost Behavior

The following data has been assembled for Mildred Company.Use the high-low method. Month Cost Hours January \ 18,000 2,000 February \ 39,000 3,500 March \ 39,280 3,450 April \ 43,400 3,200 May \ 40,000 4,000 The variable cost per hour is ________.

Which statement regarding fixed costs is TRUE?

When examining the output from regression analysis,the goodness of fit measure is labeled ________ by most computer programs.

When using the visual-fit method to estimate a cost function,the variable cost per unit of the cost driver is equal to the ________.

Which methods to approximate cost functions rely on a logical analysis of the cost environment instead of an explicit analysis of prior cost data?

The process of identifying appropriate cost drivers and their effects on the costs of making a product or providing a service is called ________.

Managers cannot eliminate discretionary fixed costs.

Committed fixed costs usually arise from the possession of facilities,equipment and a basic organizational structure.

In relation to a cost function,the term reliability means ________.

Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.

In a mixed-cost linear function with one cost driver,the intercept is the ________ and the slope is the ________.

A company has identified the appropriate cost driver for a resource cost.To estimate or approximate the cost function,the company manager has a broad selection of methods that will NOT include ________.

The fixed costs required to achieve a desired level of production or to provide a desired level of service,while maintaining product or service attributes,are ________.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

In a mixed-cost linear function with one cost driver,the intercept is the and the slope is the .