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

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: ​ ​ What was the cost formula for equipment maintenance?

Margolo Company makes cross-country skis.The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory.Data for the past 6 months were collected. Select the correct set of high and low months.

Which of the following formulas is used to calculate the variable rate in the high-low method?

_______________ assigns all manufacturing costs to the product.

Matching Select the appropriate cost behavior for each of the costs listed below. -direct materials

Select the appropriate type of fixed cost for each cost listed below. -cost of leasing

Matching Select the appropriate cost behavior for each of the costs listed below. -direct labor

Select the appropriate item for each of the definitions listed below. -allows a cost analyst to inspect the data visually

Select the appropriate type of fixed cost for each cost listed below. -property taxes

Select the appropriate cost behavior for each of the costs listed below. -salary of chief executive officer

Generally accepted accounting principles require ______________ for external reporting.

The following data for 6 months was collected from a factory. Select the correct set of high and low months.

Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months. - What is the February ending inventory for Steele Corporation using the absorption costing method?

Select the appropriate item for each of the definitions listed below. -results in the best-fitting line through a set of data points

Select the appropriate item for each of the definitions listed below. -can be changed by management

Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20.Costs for the last year were as follows: Fixed factory overhead is applied based on expected production.Last year, Richmon expected to produce 10,000 units.Assuming that beginning inventory was zero, what is the value of ending inventory under absorption costing? (Note: Round answers to the nearest dollar.)

When a mixed cost is graphed the Y-intercept corresponds to the

Select the appropriate item for each of the definitions listed below. -relies on the quality of the subjective judgment of the analyst

Glascro Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected as follows: - Using the high-low method, calculate the variable rate for the lease cost.

Using regression, the value of 'X Variable 1' equals the slope of the line.