Question 1

Select the appropriate cost behavior for each of the costs listed below.
-rental cost of warehouse

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 2

The following information pertains to Mayberry Corporation: 
  
-What is the value of the ending inventory using the absorption costing method?

Accepted Answer

A)  $240,000 
B)  $360,000 
C)  $600,000 
D)  $420,000 
A)  $240,000 
B)  $360,000 
C)  $600,000 
D)  $420,000

Question 3

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

Accepted Answer

coefficien

Question 4

The method of least squares

Accepted Answer

A)  uses the results of regression analysis to construct a cost formula. 
B)  is the least accurate method. 
C)  analyzes a cost relationship by plotting the data points on a graph. 
D)  can easily be calculated by hand. 
A)  uses the results of regression analysis to construct a cost formula. 
B)  is the least accurate method. 
C)  analyzes a cost relationship by plotting the data points on a graph. 
D)  can easily be calculated by hand.

Question 5

If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:

Accepted Answer

A)  straight variable cost assumptions. 
B)  fixed costs assumptions. 
C)  step-fixed cost assumptions. 
D)  mixed cost assumptions. 
A)  straight variable cost assumptions. 
B)  fixed costs assumptions. 
C)  step-fixed cost assumptions. 
D)  mixed cost assumptions.

Question 6

A _____ is a causal factor that measures the output of the activity that causes costs to change.

Accepted Answer

A)  cost commitment 
B)  cost driver 
C)  mixed cost 
D)  fixed cost 
A)  cost commitment 
B)  cost driver 
C)  mixed cost 
D)  fixed cost

Question 7

Match the type of income statement to the costs it includes.
-Fixed selling expense

Accepted Answer

A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements 
A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements

Question 8

Martin Company makes cell phones.The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory.Data for the past four months were collected.  
 
  Coefficients shown by a regression program are:

Using the results of regression, the cost formula for electricity cost was

Accepted Answer

A)  $9.48 × machine hours 
B)  $2,255 × machine hours 
C)  $2,255 + ($9.48 × machine hours) 
D)  None of these are correct. 
A)  $9.48 × machine hours 
B)  $2,255 × machine hours 
C)  $2,255 + ($9.48 × machine hours) 
D)  None of these are correct.

Question 9

Select the appropriate item for each of the definitions listed below.
-must be purchased in chunks

Accepted Answer

A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost 
A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost

Question 10

Marigold Company makes furniture.The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory.Data for the past four months were collected as follows:

Coefficients shown by a regression program are as follows:
 
  Using the results of regression, what would be the total budgeted cost for electricity next month assuming that 620 machine hours are budgeted? (Round to the nearest dollar.)

Accepted Answer

A)  $5,440 
B)  $6,000 
C)  $7,673 
D)  $4,200 
A)  $5,440 
B)  $6,000 
C)  $7,673 
D)  $4,200

Question 11

Fixed cost per unit is $10 when 12,000 units are produced and $3 when 40,000 units are produced.What is the total fixed cost when nothing is produced?

Accepted Answer

A)  $175,000 
B)  $200,000 
C)  $120,000 
D)  $100,000 
A)  $175,000 
B)  $200,000 
C)  $120,000 
D)  $100,000

Question 12

Select the appropriate item for each of the definitions listed below.
-total cost depends on the level of output

Accepted Answer

A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost 
A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost

Question 13

Select the appropriate item for each of the definitions listed below.
-a factor that causes a change in cost or activity

Accepted Answer

A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost 
A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost

Question 14

Which of the following is not included in absorption costing?

Accepted Answer

A)  Fixed overhead 
B)  Direct materials 
C)  Direct labor 
D)  Contribution margin 
A)  Fixed overhead 
B)  Direct materials 
C)  Direct labor 
D)  Contribution margin

Question 15

Sanders Company has the following information for last year 
There were no beginning inventories.
 
- 
There were no beginning inventories.What is the income for Sanders using the absorption costing method?

Accepted Answer

A)  $520,000 
B)  $480,000 
C)  $1,200,000 
D)  $500,000 
A)  $520,000 
B)  $480,000 
C)  $1,200,000 
D)  $500,000

Question 16

Select the appropriate type of cost for each of the definitions below.
-has both a variable and a fixed component

Accepted Answer

A) variable 
B) fixed 
C) mixed 
D) step 
A) variable 
B) fixed 
C) mixed 
D) step

Question 17

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received: ​
​
  The driver used was the number of machine hours.
Using the cost formula for the equipment maintenance cost, what is the predicted cost of equipment maintenance for April, assuming that 8,000 machine hours will be logged in April?

Accepted Answer

A)  $185,000 
B)  $140,000 
C)  $200,000 
D)  None of these are correct. 
A)  $185,000 
B)  $140,000 
C)  $200,000 
D)  None of these are correct.

Question 18

Select the appropriate item for each of the definitions listed below.
-involves plotting data points on a graph

Accepted Answer

A) high-low method 
B) scatter-graph method 
C) method of least squares 
A) high-low method 
B) scatter-graph method 
C) method of least squares

Question 19

PristinDay Company produces handheld calculators.The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory.Data for the past four months were collected as follows:  
 
  Coefficients shown by a regression program are as follows:

-  Using the results of regression, calculate the variable rate of maintenance cost.

Accepted Answer

A)  $6.65 per machine hour 
B)  $10.24 per machine hour 
C)  $8.50 per machine hour 
D)  $12.00 per machine hour 
A)  $6.65 per machine hour 
B)  $10.24 per machine hour 
C)  $8.50 per machine hour 
D)  $12.00 per machine hour

Question 20

Select the appropriate type of cost for each of the definitions listed below.
-will decrease on a per-unit basis as output increases

Accepted Answer

A) variable 
B) fixed 
C) mixed 
D) step 
A) variable 
B) fixed 
C) mixed 
D) step

Select the appropriate cost behavior for each of the costs listed below. -rental cost of warehouse

The following information pertains to Mayberry Corporation: -What is the value of the ending inventory using the absorption costing method?

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

The method of least squares

If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:

A _____ is a causal factor that measures the output of the activity that causes costs to change.

Match the type of income statement to the costs it includes. -Fixed selling expense

Select the appropriate item for each of the definitions listed below. -must be purchased in chunks

Fixed cost per unit is $10 when 12,000 units are produced and $3 when 40,000 units are produced.What is the total fixed cost when nothing is produced?

Select the appropriate item for each of the definitions listed below. -total cost depends on the level of output

Select the appropriate item for each of the definitions listed below. -a factor that causes a change in cost or activity

Which of the following is not included in absorption costing?

Sanders Company has the following information for last year There were no beginning inventories. - There were no beginning inventories.What is the income for Sanders using the absorption costing method?

Select the appropriate type of cost for each of the definitions below. -has both a variable and a fixed component

Select the appropriate item for each of the definitions listed below. -involves plotting data points on a graph

Select the appropriate type of cost for each of the definitions listed below. -will decrease on a per-unit basis as output increases

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements

Select the appropriate cost behavior for each of the costs listed below. -rental cost of warehouse

The following information pertains to Mayberry Corporation: -What is the value of the ending inventory using the absorption costing method?

The percentage of variability in the dependent variable explained by an independent variable is called the ____________________________________.

The method of least squares

If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:

A _____ is a causal factor that measures the output of the activity that causes costs to change.

Match the type of income statement to the costs it includes. -Fixed selling expense

Select the appropriate item for each of the definitions listed below. -must be purchased in chunks

Fixed cost per unit is $10 when 12,000 units are produced and $3 when 40,000 units are produced.What is the total fixed cost when nothing is produced?

Select the appropriate item for each of the definitions listed below. -total cost depends on the level of output

Select the appropriate item for each of the definitions listed below. -a factor that causes a change in cost or activity

Which of the following is not included in absorption costing?

Sanders Company has the following information for last year There were no beginning inventories. - There were no beginning inventories.What is the income for Sanders using the absorption costing method?

Select the appropriate type of cost for each of the definitions below. -has both a variable and a fixed component

Select the appropriate item for each of the definitions listed below. -involves plotting data points on a graph

Select the appropriate type of cost for each of the definitions listed below. -will decrease on a per-unit basis as output increases

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters