Question 1

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

Accepted Answer

A) True 
 B)False

Question 2

The high-low method:

Accepted Answer

A)  is the most accurate methods. 
B)  is not affected by the presence of outliers. 
C)  has the advantage of objectivity. 
D)  has the advantage of subjectivity. 
A)  is the most accurate methods. 
B)  is not affected by the presence of outliers. 
C)  has the advantage of objectivity. 
D)  has the advantage of subjectivity.

Question 3

Select the appropriate item for each of the definitions listed below.
-may reveal the presence of outliers

Accepted Answer

A) high-low method 
B) scatter-graph method 
C) method of least squares 
A) high-low method 
B) scatter-graph method 
C) method of least squares

Question 4

_______________________ are costs that have both a fixed and a variable component.

Accepted Answer

The answer of _______________________ are costs that have both a...

Question 5

Taran Company incurred the following costs for the months of January and February. ​
​
  If output was 5,000 units in January and 10,000 units in February we can assume that:

Accepted Answer

A)  utilities and materials are variable costs. 
B)  utilities, insurance, and depreciation are fixed costs. 
C)  insurance and depreciation are mixed costs. 
D)  materials are the only variable cost. 
A)  utilities and materials are variable costs. 
B)  utilities, insurance, and depreciation are fixed costs. 
C)  insurance and depreciation are mixed costs. 
D)  materials are the only variable cost.

Question 6

Which of the following is true for the cost formula given below? Total cost = $80,000 + ($200 × number of customers)
The term "number of customers" is the:

Accepted Answer

A)  independent variable. 
B)  dependent variable. 
C)  regression rate. 
D)  overhead rate. 
A)  independent variable. 
B)  dependent variable. 
C)  regression rate. 
D)  overhead rate.

Question 7

Which of the following is true when output decreases?

Accepted Answer

A)  Total fixed costs remain the same 
B)  Semi-mixed costs increase 
C)  Per-unit step costs decrease 
D)  All of these are correct. 
A)  Total fixed costs remain the same 
B)  Semi-mixed costs increase 
C)  Per-unit step costs decrease 
D)  All of these are correct.

Question 8

A cost that changes in total as output changes is a variable cost.

Accepted Answer

A) True 
 B)False

Question 9

Select the appropriate item for each of the definitions listed below.
-the y-intercept corresponds to the fixed cost

Accepted Answer

A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost 
A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost

Question 10

The following 6 months of data were collected on electricity cost and the number of machine hours in a factory.

-An independent variable value used in calculating the cost line using the high-low method is:

Accepted Answer

A)  $27,950 
B)  5,430 
C)  $25,160 
D)  4,000 
A)  $27,950 
B)  5,430 
C)  $25,160 
D)  4,000

Question 11

Which of the following would probably be a fixed cost in a fast-food restaurant?

Accepted Answer

A)  cost of hamburger 
B)  cost of french fries 
C)  shift manager's salary 
D)  utility cost 
A)  cost of hamburger 
B)  cost of french fries 
C)  shift manager's salary 
D)  utility cost

Question 12

Variable costing is

Accepted Answer

A)  a good way to value inventories for the balance sheet. 
B)  used for external reporting purposes. 
C)  not useful for companies with multiple segments. 
D)  a useful tool for management decision making. 
E)  can only be used by start-up companies. 
A)  a good way to value inventories for the balance sheet. 
B)  used for external reporting purposes. 
C)  not useful for companies with multiple segments. 
D)  a useful tool for management decision making. 
E)  can only be used by start-up companies.

Question 13

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the intercept?

Accepted Answer

A)  fixed cost 
B)  total cost 
C)  output 
D)  variable rate 
A)  fixed cost 
B)  total cost 
C)  output 
D)  variable rate

Question 14

Which of the following statements is true?

Accepted Answer

A)  Absorption costing income exceeds variable costing income when units produced and sold are equal. 
B)  Variable costing income exceeds absorption costing income when units produced exceed units sold. 
C)  Absorption costing income exceeds variable costing income when units produced are less than units sold. 
D)  Absorption costing income exceeds variable costing income when units produced are greater than units sold. 
A)  Absorption costing income exceeds variable costing income when units produced and sold are equal. 
B)  Variable costing income exceeds absorption costing income when units produced exceed units sold. 
C)  Absorption costing income exceeds variable costing income when units produced are less than units sold. 
D)  Absorption costing income exceeds variable costing income when units produced are greater than units sold.

Question 15

Matching
Select the appropriate cost behavior for each of the costs listed below.
-depreciation

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 16

Match the type of income statement to the costs it includes.
-Variable selling expense

Accepted Answer

A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements 
A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements

Question 17

An advantage of the high-low method is that it ___________.

Accepted Answer

is objective
provide

Question 18

Fixed costs are costs that:

Accepted Answer

A)  decrease as the per unit variable cost increases. 
B)  are constant within the relevant range as the level of output changes. 
C)  increase as the miscellaneous expenses decrease with the level of output. 
D)  All of these are correct. 
A)  decrease as the per unit variable cost increases. 
B)  are constant within the relevant range as the level of output changes. 
C)  increase as the miscellaneous expenses decrease with the level of output. 
D)  All of these are correct.

Question 19

Select the appropriate cost behavior for each of the costs listed below.
-license fees on automobiles

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 20

Determining cost behavior is not essential to planning, controlling, and decision making.

Accepted Answer

A) True 
 B)False

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

The high-low method:

Select the appropriate item for each of the definitions listed below. -may reveal the presence of outliers

_______________________ are costs that have both a fixed and a variable component.

Taran Company incurred the following costs for the months of January and February. If output was 5,000 units in January and 10,000 units in February we can assume that:

Which of the following is true for the cost formula given below? Total cost = $80,000 + ($200 × number of customers) The term "number of customers" is the:

Which of the following is true when output decreases?

A cost that changes in total as output changes is a variable cost.

Select the appropriate item for each of the definitions listed below. -the y-intercept corresponds to the fixed cost

The following 6 months of data were collected on electricity cost and the number of machine hours in a factory. -An independent variable value used in calculating the cost line using the high-low method is:

Which of the following would probably be a fixed cost in a fast-food restaurant?

Variable costing is

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the intercept?

Which of the following statements is true?

Matching Select the appropriate cost behavior for each of the costs listed below. -depreciation

Match the type of income statement to the costs it includes. -Variable selling expense

An advantage of the high-low method is that it ___________.

Fixed costs are costs that:

Select the appropriate cost behavior for each of the costs listed below. -license fees on automobiles

Determining cost behavior is not essential to planning, controlling, and decision making.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements

Fixed costs are costs that in total remain constant within the relevant range as the level of output increases or decreases.

The high-low method:

Select the appropriate item for each of the definitions listed below. -may reveal the presence of outliers

_______________________ are costs that have both a fixed and a variable component.

Taran Company incurred the following costs for the months of January and February. ​ ​ If output was 5,000 units in January and 10,000 units in February we can assume that:

Which of the following is true for the cost formula given below? Total cost = $80,000 + ($200 × number of customers) The term "number of customers" is the:

Which of the following is true when output decreases?

A cost that changes in total as output changes is a variable cost.

Select the appropriate item for each of the definitions listed below. -the y-intercept corresponds to the fixed cost

The following 6 months of data were collected on electricity cost and the number of machine hours in a factory. -An independent variable value used in calculating the cost line using the high-low method is:

Which of the following would probably be a fixed cost in a fast-food restaurant?

Variable costing is

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the intercept?

Which of the following statements is true?

Matching Select the appropriate cost behavior for each of the costs listed below. -depreciation

Match the type of income statement to the costs it includes. -Variable selling expense

An advantage of the high-low method is that it ___________.

Fixed costs are costs that:

Select the appropriate cost behavior for each of the costs listed below. -license fees on automobiles

Determining cost behavior is not essential to planning, controlling, and decision making.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Taran Company incurred the following costs for the months of January and February. If output was 5,000 units in January and 10,000 units in February we can assume that: