Question 1

If production volume increases from 16,000 to 20,000 units,

Accepted Answer

A)  total costs will increase by 20 percent. 
B)  total costs will increase by 25 percent. 
C)  total variable costs will increase by 25 percent. 
D)  mixed and variable costs will increase by 25 percent. 
A)  total costs will increase by 20 percent. 
B)  total costs will increase by 25 percent. 
C)  total variable costs will increase by 25 percent. 
D)  mixed and variable costs will increase by 25 percent.

Question 2

The cumulative average-time learning curve model states that the cumulative average time per unit increases by a constant percentage.

Accepted Answer

A) True 
 B)False

Question 3

__________ explain changes in cost factors other than changes in units produced.
or

Accepted Answer

Non-unit-based costs

Question 4

Each time cumulative volume doubles, __________ fall by a constant and predictable percentage.

Accepted Answer

The answer of Each time cumulative volume doubles, __________ fall...

Question 5

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period:
    Refer to Figure 3-5. Predict a cost for 5,000 labor hours.

Accepted Answer

A)  $17,900 
B)  $17,700 
C)  $16,667 
D)  $30,400 
A)  $17,900 
B)  $17,700 
C)  $16,667 
D)  $30,400

Question 6

__________ result when organizations acquire many multiperiod service capacities by paying cash up front.

Accepted Answer

Committed

Question 7

A __________ function displays a constant level of cost for a range of output and then jumps to a higher level.
or

Accepted Answer

The answer of A __________ function displays a constant level...

Question 8

The appropriate range for the coefficient of correlation (r) is

Accepted Answer

A)  0 £ r £ 1. 
B)  -% £ r £ +%. 
C)  -1 £ r £ 1. 
D)  -1 £ r £ +%. 
A)  0 £ r £ 1. 
B)  -% £ r £ +%. 
C)  -1 £ r £ 1. 
D)  -1 £ r £ +%.

Question 9

A correlation coefficient near +1 means that two variables are moving in the __________ direction.

Accepted Answer

The answer of A correlation coefficient near +1 means that...

Question 10

Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.

Accepted Answer

A) True 
 B)False

Question 11

Figure 3-7 The following computer printout estimated overhead costs using regression:
  Please find the following statistical table
  During the last accounting period 10,000 DLH were worked.
Refer to Figure 3-7. The coefficient of determination in this model tells us that

Accepted Answer

A)  the slope is 14.05. 
B)  the intercept is 100.41. 
C)  80 percent of the variation in the overhead variable is explained by DLH. 
D)  the slope is significant. 
A)  the slope is 14.05. 
B)  the intercept is 100.41. 
C)  80 percent of the variation in the overhead variable is explained by DLH. 
D)  the slope is significant.

Question 12

The range of activity within which a linear cost function is valid is called the

Accepted Answer

A)  normal range. 
B)  relevant range. 
C)  activity range. 
D)  none of these. 
A)  normal range. 
B)  relevant range. 
C)  activity range. 
D)  none of these.

Question 13

Given the following information:
   Required:

Accepted Answer

Solution:
 @#IMG-DLM& c. There is no good way to d

Question 14

Total costs may be computed as follows:

Accepted Answer

A)  Fixed costs + (Variable costs per unit ´ Unit volume) 
B)  (Fixed costs per unit ´ Unit volume) + Variable costs 
C)  Fixed costs per unit + (Variable costs per unit ´ Unit volume) 
D)  (Fixed costs per unit ´ Unit volume) + Variable costs per unit 
A)  Fixed costs + (Variable costs per unit ´ Unit volume) 
B)  (Fixed costs per unit ´ Unit volume) + Variable costs 
C)  Fixed costs per unit + (Variable costs per unit ´ Unit volume) 
D)  (Fixed costs per unit ´ Unit volume) + Variable costs per unit

Question 15

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced?

Accepted Answer

A)  $130,000 
B)  $200,000 
C)  $12 
D)  $175,000 
A)  $130,000 
B)  $200,000 
C)  $12 
D)  $175,000

Question 16

When a cost behavior pattern does not follow a linear pattern, a non linear cost curve is used called the __________ curve.

Accepted Answer

The answer of When a cost behavior pattern does not...

Question 17

The activity-based resource usage model allows managers to better calculate the changes in resource supply and demand resulting from decisions such as:

Accepted Answer

A)  to make or buy production components 
B)  maximization of individual unit performance. 
C)  increasing the allocation of costs. 
D)  focusing on managing costs rather than activities. 
A)  to make or buy production components 
B)  maximization of individual unit performance. 
C)  increasing the allocation of costs. 
D)  focusing on managing costs rather than activities.

Question 18

Which of the following equations uses multiple regression?

Accepted Answer

A)  Overhead = a + b(MH) 
B)  Overhead = a + b(DLH) 
C)  DL Costs = a + b(MH) 
D)  Overhead = a + b(DLH) + c(MH) 
A)  Overhead = a + b(MH) 
B)  Overhead = a + b(DLH) 
C)  DL Costs = a + b(MH) 
D)  Overhead = a + b(DLH) + c(MH)

Question 19

A cost object is the item for which managers want cost information, so the first step is to determine appropriate cost objects.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

If production volume increases from 16,000 to 20,000 units,

The cumulative average-time learning curve model states that the cumulative average time per unit increases by a constant percentage.

__________ explain changes in cost factors other than changes in units produced. or

Each time cumulative volume doubles, __________ fall by a constant and predictable percentage.

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: Refer to Figure 3-5. Predict a cost for 5,000 labor hours.

__________ result when organizations acquire many multiperiod service capacities by paying cash up front.

A __________ function displays a constant level of cost for a range of output and then jumps to a higher level. or

The appropriate range for the coefficient of correlation (r) is

A correlation coefficient near +1 means that two variables are moving in the __________ direction.

Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.

Figure 3-7 The following computer printout estimated overhead costs using regression: Please find the following statistical table During the last accounting period 10,000 DLH were worked. Refer to Figure 3-7. The coefficient of determination in this model tells us that

The range of activity within which a linear cost function is valid is called the

Given the following information: Required:

Total costs may be computed as follows:

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced?

When a cost behavior pattern does not follow a linear pattern, a non linear cost curve is used called the __________ curve.

The activity-based resource usage model allows managers to better calculate the changes in resource supply and demand resulting from decisions such as:

Which of the following equations uses multiple regression?

A cost object is the item for which managers want cost information, so the first step is to determine appropriate cost objects.

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

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 3: Cost Behavior

If production volume increases from 16,000 to 20,000 units,

The cumulative average-time learning curve model states that the cumulative average time per unit increases by a constant percentage.

__________ explain changes in cost factors other than changes in units produced. or

Each time cumulative volume doubles, __________ fall by a constant and predictable percentage.

Figure 3-5 Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: Refer to Figure 3-5. Predict a cost for 5,000 labor hours.

__________ result when organizations acquire many multiperiod service capacities by paying cash up front.

A __________ function displays a constant level of cost for a range of output and then jumps to a higher level. or

The appropriate range for the coefficient of correlation (r) is

A correlation coefficient near +1 means that two variables are moving in the __________ direction.

Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.

Figure 3-7 The following computer printout estimated overhead costs using regression: Please find the following statistical table During the last accounting period 10,000 DLH were worked. Refer to Figure 3-7. The coefficient of determination in this model tells us that

The range of activity within which a linear cost function is valid is called the

Given the following information: Required:

Total costs may be computed as follows:

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced?

When a cost behavior pattern does not follow a linear pattern, a non linear cost curve is used called the __________ curve.

The activity-based resource usage model allows managers to better calculate the changes in resource supply and demand resulting from decisions such as:

Which of the following equations uses multiple regression?

A cost object is the item for which managers want cost information, so the first step is to determine appropriate cost objects.

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

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters