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

Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20.Costs for last year were as follows: Fixed factory overhead is applied based on expected production.Last year, Richmon expected to produce 10,000 units. What is operating income for last year under absorption costing?

Select the appropriate item for each of the definitions listed below. -it measures output and explains changes in cost

"Outliers" are points that seem to fit the general pattern of behavior.

Per-unit variable costs

__________________ is the general term for describing whether a cost changes when the level of output changes.

An increase in output leads to a(n):

Calculation of the cost line using the high-low method tests the lowest cost period to see if it is an outlier.

Lavandyr Company has two divisions with the following segment margins for the current year: Northern, $300,000 and Southern, $500,000.Common expenses of the company are $75,000.What is Lavandyr Company's income?

Step costs

Blacken Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected. ​ ​ Using a regression program, the yearly utility cost equation (with all variables to the nearest penny) is

Select the appropriate type of fixed cost for each cost listed below. -cost of executive training seminars

Select the appropriate item for each of the definitions listed below. -a description of how a cost changes when the level of output changes

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows: ​ Assuming that beginning inventory was zero, what is the value of ending inventory under variable costing?

Knowing how costs change as output changes is essential to

Gross margin is to absorption costing as ____ is to variable costing.

Marigold Company makes furniture.The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory.Data for the past four months were collected as follows: Coefficients shown by a regression program are as follows: - Using the results of regression, calculate the variable rate of the electricity cost.

Sanders Company has the following information for last year There were no beginning inventories. - What is the income for Sanders using the variable costing method?

The following data for 4 months was collected from a factory. Select the correct set of high and low months.

Depreciation on factory equipment would be an example of a(n) _________ cost.

Using a regression program, the term 'X Variable 1' refers to the dependent variable.