Exam 3: Cost Behavior

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value beyond which the line is parallel to the horizontal axis?

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

When a firm acquires the resources needed to perform an activity, it is obtaining

The scatterplot method of cost estimation

Which of the following equations uses multiple regression?

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?

The following computer printout estimated overhead costs using linear regression: Required:

If at a given volume total costs and fixed costs are known, the variable costs per unit may be computed as follows:

_______________ result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments.

A coefficient of determination of 0.91 means

What does a correlation coefficient near +1 mean?

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