In regression analysis, an R square (R2) of 1.0 would indicate:

A) that 1 percent of the data points are on the regression line. B) that 1 percent of the total mixed costs can be attributable to fixed costs. C) that 1 percent of the total mixed costs can be attributable to variable costs. D) that there is a perfect correlation between the independent and dependent variables. A) that 1 percent of the data points are on the regression line. B) that 1 percent of the total mixed costs can be attributable to fixed costs. C) that 1 percent of the total mixed costs can be attributable to variable costs. D) that there is a perfect correlation between the independent and dependent variables.

Exam 5: Cost Behavior

Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R²) of .86. Which of the following statements best describes the meaning of R²?

(Multiple Choice)

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Question 41

Which of the following statements is true regarding variable costing?

(Multiple Choice)

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Question 42

Sabina and Associates has the following current year costs: Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%. Required:

(Essay)

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Question 43

As production increases, fixed costs per unit ____.

(Multiple Choice)

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Question 44

Howard Inc. provides temporary clerical services to local businesses. The company has determined that total costs for a given month can be predicted by using the following formula: Total costs = $2,500 + $20x Where "x" equals total direct labor hours for the month. If total direct labor hours for June are expected to be 600, what are total costs expected to be?

(Multiple Choice)

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Question 45

A cost that has both a fixed and variable component is called a(n):

(Multiple Choice)

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Question 46

The manager of a company is considering a special project that will increase sales revenue by $27,500 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

(Multiple Choice)

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Question 47

In regression analysis, an R square (R²) of 1.0 would indicate:

(Multiple Choice)

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Question 48

Chadwick Ski Lodge Chadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies: Refer to the information provided for Chadwick Ski Lodge. What type of cost is housekeeping?

(Multiple Choice)

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Question 49

Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net operating income using absorption and variable costing?

(Multiple Choice)

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Question 50

Tyson Manufacturing has the following information available for 2012: During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each. Refer to the information provided for Tyson Manufacturing. What is the net operating income under absorption costing?

(Multiple Choice)

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Question 51

How do variable costing and absorption costing differ? When is net operating income different under the two methods?

(Essay)

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Question 52

Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows: Refer to the Cardinal Cleaners information above. Using the high/low method, what is the variable cost per unit?

(Multiple Choice)

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Question 53

You are the manager of a small cookie stand. The variable cost of producing one chocolate chip cookie is $.75. Your fixed costs per week are $1,000. What is the total cost per unit if 1,000 cookies are produced and sold per week? 2,000 cookies? Do your answers for the two quantities differ? Why or why not?

(Essay)

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Question 54

Speedy Couriers Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows: Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs?

(Multiple Choice)

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Question 55

Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows: Refer to the Cardinal Cleaners information above. Cardinal uses the high/low method to predict total overhead costs. If Cardinal anticipates using 162 gallons of solvent in December, what are expected total overhead costs?

(Multiple Choice)

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Question 56

When predicting cost behavior, the volume of production for which the fixed and variable cost relationships are assumed to hold true is called the:

(Multiple Choice)

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Question 57

Why should income taxes be considered by corporate decision-makers?

(Essay)

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Question 58

____ are costs that change in total when production volume increases or decreases within the relevant range.

(Multiple Choice)

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Question 59

Blossom Products is considering a special project that will increase sales revenue by $127,000 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 103

Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R²) of .86. Which of the following statements best describes the meaning of R²?

Which of the following statements is true regarding variable costing?

Sabina and Associates has the following current year costs: Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%. Required:

As production increases, fixed costs per unit ____.

A cost that has both a fixed and variable component is called a(n):

The manager of a company is considering a special project that will increase sales revenue by $27,500 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

In regression analysis, an R square (R²) of 1.0 would indicate:

Chadwick Ski Lodge Chadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies: Refer to the information provided for Chadwick Ski Lodge. What type of cost is housekeeping?

Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net operating income using absorption and variable costing?

Tyson Manufacturing has the following information available for 2012: During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each. Refer to the information provided for Tyson Manufacturing. What is the net operating income under absorption costing?

How do variable costing and absorption costing differ? When is net operating income different under the two methods?

Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows: Refer to the Cardinal Cleaners information above. Using the high/low method, what is the variable cost per unit?

Speedy Couriers Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows: Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs?

When predicting cost behavior, the volume of production for which the fixed and variable cost relationships are assumed to hold true is called the:

Why should income taxes be considered by corporate decision-makers?

____ are costs that change in total when production volume increases or decreases within the relevant range.

Blossom Products is considering a special project that will increase sales revenue by $127,000 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

Filters

Exam 5: Cost Behavior

Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R2) of .86. Which of the following statements best describes the meaning of R2?

Which of the following statements is true regarding variable costing?

Sabina and Associates has the following current year costs: Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%. Required:

As production increases, fixed costs per unit ____.

A cost that has both a fixed and variable component is called a(n):

The manager of a company is considering a special project that will increase sales revenue by $27,500 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

In regression analysis, an R square (R2) of 1.0 would indicate:

Chadwick Ski Lodge Chadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies: Refer to the information provided for Chadwick Ski Lodge. What type of cost is housekeeping?

Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net operating income using absorption and variable costing?

Tyson Manufacturing has the following information available for 2012: During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each. Refer to the information provided for Tyson Manufacturing. What is the net operating income under absorption costing?

How do variable costing and absorption costing differ? When is net operating income different under the two methods?

Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows: Refer to the Cardinal Cleaners information above. Using the high/low method, what is the variable cost per unit?

Speedy Couriers Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows: Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs?

When predicting cost behavior, the volume of production for which the fixed and variable cost relationships are assumed to hold true is called the:

Why should income taxes be considered by corporate decision-makers?

____ are costs that change in total when production volume increases or decreases within the relevant range.

Blossom Products is considering a special project that will increase sales revenue by $127,000 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

Filters

Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R²) of .86. Which of the following statements best describes the meaning of R²?

In regression analysis, an R square (R²) of 1.0 would indicate: