Question 1

The experience curve relates cost to increased efficiency, such that the more a task is performed, the lower the cost of doing will be.

Accepted Answer

A) True 
 B)False

Question 2

The Johnson Company is trying to find an appropriate allocation base for factory overhead. Presented are five months of data:
   r =   Required:

Accepted Answer

The answer of The Johnson Company is trying to find...

Question 3

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Accepted Answer

A) True 
 B)False

Question 4

Multiple regression has __________ or __________ independent variables.

Accepted Answer

The answer of Multiple regression has __________ or __________ independent...

Question 5

Apparent Corp. has developed the following information on product costs and inventories for a three-month period:   Manufacturing costs $4,000 $6,000 $5,500
Based on managerial judgment, the best predictor of manufacturing costs is

Accepted Answer

A)  beginning inventory. 
B)  units manufactured. 
C)  ending inventory. 
D)  units available. 
A)  beginning inventory. 
B)  units manufactured. 
C)  ending inventory. 
D)  units available.

Question 6

Lowell & Company has the following cost data pertaining to the production of small desks:
   Required:

Accepted Answer

The answer of Lowell & Company has the following cost...

Question 7

In the formula Y = F + VX, V refers to the

Accepted Answer

A)  dependent variable. 
B)  intercept. 
C)  slope. 
D)  total variable costs. 
A)  dependent variable. 
B)  intercept. 
C)  slope. 
D)  total variable costs.

Question 8

Longhorn Enterprises rents a truck for a flat fee plus an additional charge per mile. What type of cost is the rent?

Accepted Answer

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

Question 9

Figure 3-2 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed.
Refer to Figure 3-2. What is the cost of unused activity?

Accepted Answer

A)  $300,000 
B)  $240,000 
C)  $30 
D)  $60,000 
A)  $300,000 
B)  $240,000 
C)  $30 
D)  $60,000

Question 10

The costs incurred that provide long-term activity capacity, usually as the result of strategic planning are called:

Accepted Answer

A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs 
A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs

Question 11

Methods of estimating costs used by companies include the industrial engineering method, the account analysis method, and the instant decision method.

Accepted Answer

A) True 
 B)False

Question 12

Marlowe Company currently leases a delivery truck from Burton Enterprises for a fee of $250 per month plus $0.40 per mile. Management is evaluating the desirability of switching to a modern, fuel-efficient truck, which can be leased from Goliath, Inc., for a fee of $600 per month plus $0.05 per mile. All operating costs and fuel are included in the rental fees. In general, a lease from

Accepted Answer

A)  Goliath, Inc., is economically preferable to a lease from Burton Enterprises regardless of the monthly use. 
B)  Burton Enterprises is economically preferable below 1,000 miles per month. 
C)  Burton Enterprises is economically preferable to a lease from Goliath, Inc., regardless of the monthly use. 
D)  Burton Enterprises is economically preferable above 1,000 miles per month. 
A)  Goliath, Inc., is economically preferable to a lease from Burton Enterprises regardless of the monthly use. 
B)  Burton Enterprises is economically preferable below 1,000 miles per month. 
C)  Burton Enterprises is economically preferable to a lease from Goliath, Inc., regardless of the monthly use. 
D)  Burton Enterprises is economically preferable above 1,000 miles per month.

Question 13

__________ are costs incurred that provide long-term activity capacity.

Accepted Answer

The answer of __________ are costs incurred that provide long-term...

Question 14

Flexible resources

Accepted Answer

A)  are supplied as needed. 
B)  are acquired from outside sources, not requiring a long-term commitment. 
C)  have no unused capacity. 
D)  all of the above. 
A)  are supplied as needed. 
B)  are acquired from outside sources, not requiring a long-term commitment. 
C)  have no unused capacity. 
D)  all of the above.

Question 15

In the formula Y = F + VX, F refers to the

Accepted Answer

A)  slope. 
B)  intercept. 
C)  dependent variable. 
D)  independent variable. 
A)  slope. 
B)  intercept. 
C)  dependent variable. 
D)  independent variable.

Question 16

Figure 3-8 The following computer printout estimated overhead costs using multiple regression:
  During the year the company used 1,000 setup hours and 500 parts.
Refer to Figure 3-8. The degrees of freedom for the model is

Accepted Answer

A)  158 
B)  157 
C)  159 
D)  160 
A)  158 
B)  157 
C)  159 
D)  160

Question 17

When the volume of activity increases within the relevant range, the fixed cost per unit

Accepted Answer

A)  decreases at first, then increases. 
B)  remains the same. 
C)  decreases. 
D)  increases. 
A)  decreases at first, then increases. 
B)  remains the same. 
C)  decreases. 
D)  increases.

Question 18

A managerial accountant has determined the following relationships between overhead and several possible bases:   The best basis for overhead application is

Accepted Answer

A)  direct labor hours. 
B)  coffee breaks. 
C)  direct labor dollars. 
D)  machine hours. 
A)  direct labor hours. 
B)  coffee breaks. 
C)  direct labor dollars. 
D)  machine hours.

Question 19

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

Accepted Answer

A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs 
A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs

Question 20

A __________ interval provides a range of values for the actual cost with a prespecified degree of confidence.

Accepted Answer

The answer of A __________ interval provides a range of...

The experience curve relates cost to increased efficiency, such that the more a task is performed, the lower the cost of doing will be.

The Johnson Company is trying to find an appropriate allocation base for factory overhead. Presented are five months of data: r = Required:

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Multiple regression has or independent variables.

Apparent Corp. has developed the following information on product costs and inventories for a three-month period: Manufacturing costs $4,000 $6,000 $5,500 Based on managerial judgment, the best predictor of manufacturing costs is

Lowell & Company has the following cost data pertaining to the production of small desks: Required:

In the formula Y = F + VX, V refers to the

Longhorn Enterprises rents a truck for a flat fee plus an additional charge per mile. What type of cost is the rent?

Figure 3-2 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed. Refer to Figure 3-2. What is the cost of unused activity?

The costs incurred that provide long-term activity capacity, usually as the result of strategic planning are called:

Methods of estimating costs used by companies include the industrial engineering method, the account analysis method, and the instant decision method.

__________ are costs incurred that provide long-term activity capacity.

Flexible resources

In the formula Y = F + VX, F refers to the

Figure 3-8 The following computer printout estimated overhead costs using multiple regression: During the year the company used 1,000 setup hours and 500 parts. Refer to Figure 3-8. The degrees of freedom for the model is

When the volume of activity increases within the relevant range, the fixed cost per unit

A managerial accountant has determined the following relationships between overhead and several possible bases: The best basis for overhead application is

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

A __________ interval provides a range of values for the actual cost with a prespecified degree of confidence.

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 3: Cost Behavior

The experience curve relates cost to increased efficiency, such that the more a task is performed, the lower the cost of doing will be.

The Johnson Company is trying to find an appropriate allocation base for factory overhead. Presented are five months of data: r = Required:

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Multiple regression has __________ or __________ independent variables.

Apparent Corp. has developed the following information on product costs and inventories for a three-month period: Manufacturing costs $4,000 $6,000 $5,500 Based on managerial judgment, the best predictor of manufacturing costs is

Lowell & Company has the following cost data pertaining to the production of small desks: Required:

In the formula Y = F + VX, V refers to the

Longhorn Enterprises rents a truck for a flat fee plus an additional charge per mile. What type of cost is the rent?

Figure 3-2 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed. Refer to Figure 3-2. What is the cost of unused activity?

The costs incurred that provide long-term activity capacity, usually as the result of strategic planning are called:

Methods of estimating costs used by companies include the industrial engineering method, the account analysis method, and the instant decision method.

__________ are costs incurred that provide long-term activity capacity.

Flexible resources

In the formula Y = F + VX, F refers to the

Figure 3-8 The following computer printout estimated overhead costs using multiple regression: During the year the company used 1,000 setup hours and 500 parts. Refer to Figure 3-8. The degrees of freedom for the model is

When the volume of activity increases within the relevant range, the fixed cost per unit

A managerial accountant has determined the following relationships between overhead and several possible bases: The best basis for overhead application is

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

A __________ interval provides a range of values for the actual cost with a prespecified degree of confidence.

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Multiple regression has or independent variables.