Question 1

The least-squares regression method uses all of the available data to find the best fitting line.

Accepted Answer

A) True 
 B)False

Question 2

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Accepted Answer

A) R Square 
B) Intercept 
C) X Value 
D) Multiple R 
A) R Square 
B) Intercept 
C) X Value 
D) Multiple R

Question 3

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output:     What is Star's total fixed cost?

Accepted Answer

A) $61,603 
B) $92,130 
C) $175,003 
D) $236,606 
A) $61,603 
B) $92,130 
C) $175,003 
D) $236,606

Question 4

The high-low method requires three observations of costs to calculate the cost formula.

Accepted Answer

A) True 
 B)False

Question 5

A mixed cost has:

Accepted Answer

A) either fixed or variable cost components,but not both. 
B) only variable cost components,both within and outside of the relevant range. 
C) only fixed cost components,both within and outside of the relevant range. 
D) both fixed and variable cost components. 
A) either fixed or variable cost components,but not both. 
B) only variable cost components,both within and outside of the relevant range. 
C) only fixed cost components,both within and outside of the relevant range. 
D) both fixed and variable cost components.

Question 6

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Accepted Answer

A) True 
 B)False

Question 7

Flint Enterprises had the following cost and production information for May:   Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

Accepted Answer

A) $4,620,000 
B) $4,652,000 
C) $5,070,000 
D) $5,132,000 
A) $4,620,000 
B) $4,652,000 
C) $5,070,000 
D) $5,132,000

Question 8

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Accepted Answer

A) direct costs. 
B) variable manufacturing overhead. 
C) fixed manufacturing overhead. 
D) period costs. 
A) direct costs. 
B) variable manufacturing overhead. 
C) fixed manufacturing overhead. 
D) period costs.

Question 9

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

Accepted Answer

A) $5 
B) $15 
C) $50,000 
D) $37,500 
A) $5 
B) $15 
C) $50,000 
D) $37,500

Question 10

All else being equal,if sales revenue doubles,variable costs will:

Accepted Answer

A) decrease in total. 
B) increase in total. 
C) decrease on a per unit basis. 
D) increase on a per unit basis. 
A) decrease in total. 
B) increase in total. 
C) decrease on a per unit basis. 
D) increase on a per unit basis.

Question 11

Flint Enterprises had the following cost and production information for April:   Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Accepted Answer

A) $1,285,000 
B) $1,365,000 
C) $1,745,000 
D) $1,785,000 
A) $1,285,000 
B) $1,365,000 
C) $1,745,000 
D) $1,785,000

The least-squares regression method uses all of the available data to find the best fitting line.

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: What is Star's total fixed cost?

The high-low method requires three observations of costs to calculate the cost formula.

A mixed cost has:

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Flint Enterprises had the following cost and production information for May: Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

All else being equal,if sales revenue doubles,variable costs will:

Flint Enterprises had the following cost and production information for April: Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 5: Cost Behavior

The least-squares regression method uses all of the available data to find the best fitting line.

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: What is Star's total fixed cost?

The high-low method requires three observations of costs to calculate the cost formula.

A mixed cost has:

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Flint Enterprises had the following cost and production information for May: Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

All else being equal,if sales revenue doubles,variable costs will:

Flint Enterprises had the following cost and production information for April: Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters