Question 1

Salaries paid to shift supervisors are an example of a

Accepted Answer

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

Question 2

Which of the following is NOT a correct statement concerning cost behavior?

Accepted Answer

A)  According to economics, in the long run, all costs are variable. 
B)  Variable costs increase in total in relation to the activity driver. 
C)  Unit fixed costs increase or decrease inversely in relation to the activity driver. 
D)  None of the above 
A)  According to economics, in the long run, all costs are variable. 
B)  Variable costs increase in total in relation to the activity driver. 
C)  Unit fixed costs increase or decrease inversely in relation to the activity driver. 
D)  None of the above

Question 3

__________ and __________ studies may be used in conjunction with the industrial engineering method.
or

Accepted Answer

Time; moti

Question 4

The most widely used method to determine cost behavior is managerial judgement.

Accepted Answer

A) True 
 B)False

Question 5

A correlation coefficient near 0 means that two variables are __________ .

Accepted Answer

The answer of A correlation coefficient near 0 means that...

Question 6

__________ analysis focuses on how costs react to changes in activity levels.

Accepted Answer

The answer of __________ analysis focuses on how costs react...

Question 7

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period:
    Refer to Figure 3-5. Using the high-low method, what is the cost formula for estimating costs?

Accepted Answer

A)  Total cost = $20,000 + $2.08X 
B)  Total cost = $7,500 + $2.08X 
C)  Total cost = $5,000 + 2.08X 
D)  Total cost = $2.08X 
A)  Total cost = $20,000 + $2.08X 
B)  Total cost = $7,500 + $2.08X 
C)  Total cost = $5,000 + 2.08X 
D)  Total cost = $2.08X

Question 8

Figure 3-1 Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units.
Refer to Figure 3-1. Compute the total variable machine maintenance cost last year.

Accepted Answer

A)  $275,000 
B)  $240,000 
C)  $220,000 
D)  $550,000 
A)  $275,000 
B)  $240,000 
C)  $220,000 
D)  $550,000

Question 9

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

Accepted Answer

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

Question 10

Which of the following is NOT a method of determining cost behavior?

Accepted Answer

A)  industrial engineering method 
B)  account analysis method 
C)  statistical and quantitative methods 
D)  confidence interval model 
A)  industrial engineering method 
B)  account analysis method 
C)  statistical and quantitative methods 
D)  confidence interval model

Question 11

The cost behavior method that may use time and motion studies to determine the activities and amounts for cost behavior analysis is

Accepted Answer

A)  account analysis method. 
B)  industrial engineering method. 
C)  regression analysis. 
D)  high-low method. 
A)  account analysis method. 
B)  industrial engineering method. 
C)  regression analysis. 
D)  high-low method.

Question 12

The following data were obtained from the books of Thomas Company:
     Required:
Use a computer or calculator to prepare the following:

Accepted Answer

a. @#IMG-DLM& @#IMG-DLM& c.
 @#IMG-DLM& Normal equations:
 @#IMG-DLM& Multiplyin

Question 13

The Knapp Company needs to predict the labor cost in producing small ceramic dolls. The following production information is available:
   Wage rates have steadily increased since 2011; however, management expects no
further increases in 2017.
Required:

Accepted Answer

The answer of The Knapp Company needs to predict the...

Question 14

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. What is the predicted overhead cost?

Accepted Answer

A)  $2,500 
B)  $75,000 
C)  $76,000 
D)  none of these 
A)  $2,500 
B)  $75,000 
C)  $76,000 
D)  none of these

Question 15

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 resource usage?

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 16

Which of the following would be an example of a unit-based cost driver?

Accepted Answer

A)  engineering orders 
B)  material moves 
C)  inspection hours 
D)  direct labor hours 
A)  engineering orders 
B)  material moves 
C)  inspection hours 
D)  direct labor hours

Question 17

The plant manager requested information to assist in estimating maintenance costs. The following computer printout was generated using the least-squares method:
   Required:

Accepted Answer

The answer of The plant manager requested information to assist...

Question 18

The graph showing the relationship between activity costs and drivers/outputs is called the __________ .

Accepted Answer

The answer of The graph showing the relationship between activity...

Question 19

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 model being measured is

Accepted Answer

A)  Overhead = 1,000 + 25(Setup hours) + 100(# of parts) 
B)  Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts) 
C)  Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts) 
D)  Overhead = 1,000 + 25(Setup hours) 
A)  Overhead = 1,000 + 25(Setup hours) + 100(# of parts) 
B)  Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts) 
C)  Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts) 
D)  Overhead = 1,000 + 25(Setup hours)

Question 20

The scatterplot method of cost estimation

Accepted Answer

A)  is influenced by extreme observations. 
B)  requires the use of judgment. 
C)  uses the least-squares method. 
D)  is superior to other methods in its ability to distinguish between discretionary and committed fixed costs. 
A)  is influenced by extreme observations. 
B)  requires the use of judgment. 
C)  uses the least-squares method. 
D)  is superior to other methods in its ability to distinguish between discretionary and committed fixed costs.

Salaries paid to shift supervisors are an example of a

Which of the following is NOT a correct statement concerning cost behavior?

and studies may be used in conjunction with the industrial engineering method. or

The most widely used method to determine cost behavior is managerial judgement.

A correlation coefficient near 0 means that two variables are __________ .

__________ analysis focuses on how costs react to changes in activity levels.

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: Refer to Figure 3-5. Using the high-low method, what is the cost formula for estimating costs?

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

Which of the following is NOT a method of determining cost behavior?

The cost behavior method that may use time and motion studies to determine the activities and amounts for cost behavior analysis is

The following data were obtained from the books of Thomas Company: Required: Use a computer or calculator to prepare the following:

The Knapp Company needs to predict the labor cost in producing small ceramic dolls. The following production information is available: Wage rates have steadily increased since 2011; however, management expects no further increases in 2017. Required:

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. What is the predicted overhead cost?

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 resource usage?

Which of the following would be an example of a unit-based cost driver?

The plant manager requested information to assist in estimating maintenance costs. The following computer printout was generated using the least-squares method: Required:

The graph showing the relationship between activity costs and drivers/outputs is called 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 model being measured is

The scatterplot method of cost estimation

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

Salaries paid to shift supervisors are an example of a

Which of the following is NOT a correct statement concerning cost behavior?

__________ and __________ studies may be used in conjunction with the industrial engineering method. or

The most widely used method to determine cost behavior is managerial judgement.

A correlation coefficient near 0 means that two variables are __________ .

__________ analysis focuses on how costs react to changes in activity levels.

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: Refer to Figure 3-5. Using the high-low method, what is the cost formula for estimating costs?

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

Which of the following is NOT a method of determining cost behavior?

The cost behavior method that may use time and motion studies to determine the activities and amounts for cost behavior analysis is

The following data were obtained from the books of Thomas Company: Required: Use a computer or calculator to prepare the following:

The Knapp Company needs to predict the labor cost in producing small ceramic dolls. The following production information is available: Wage rates have steadily increased since 2011; however, management expects no further increases in 2017. Required:

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. What is the predicted overhead cost?

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 resource usage?

Which of the following would be an example of a unit-based cost driver?

The plant manager requested information to assist in estimating maintenance costs. The following computer printout was generated using the least-squares method: Required:

The graph showing the relationship between activity costs and drivers/outputs is called 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 model being measured is

The scatterplot method of cost estimation

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

and studies may be used in conjunction with the industrial engineering method. or